What Is Internet Banking? Advantages And Disadvantages Of E-Banking Best Guide 2021

What is internet banking

Hello friends, here we are going to learn about internet banking like what is internet banking, how to activate internet banking, the advantages and disadvantages of internet banking, and all about it.

The banking system provides the facility of transactions, work, other financial services, financial help, security of money, loan, and so on, and these services speed up our work.

With the help of a banking system, we can do secure transactions, keep our money safe, now banks have added one more facility in these facilities and that is internet banking.

Internet banking is also called net banking, web banking, e-banking but these all are the same.

Through internet banking, all the work for which we had to go to the banks, had to stand in line, now can be done sitting at home like sending money to any other account or someone else’s account,

Requesting for other services like ATM, checkbook, etc. and other tasks which were not done even by visiting the bank can now be done sitting at home through internet banking,

Now you may have questions in your mind like what is internet banking, how to activate internet banking, the advantages, and disadvantages of internet banking, and so on.

So read this post till the end, and you will get all information about internet banking.

Establishment Of Internet Banking In India

The idea of ​​starting internet banking in India was started in 1990 but at that time internet facilities were not available India, in 1995 internet operation was started in India.

After that, first of all, ICICI Bank started an internet banking facility in India in 1996, but internet banking facilities started smoothly in India in 1999.

Today, most of the banks in the country are providing internet banking facility and consumers can do their transactional work from home through net banking.

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What Is Internet Banking

Internet banking is a combination of two words internet and banking, visiting the bank’s website or app through the internet through a device such as a mobile, laptop, or computer and doing financial transactions from your bank account and using other banking facilities is called Internet banking.

Through the internet banking all the work like requesting money to your account, fund transfer to your other bank account, sending money to someone’s account, sending the request for the new checkbook and ATM,

Changing the password of ATM, payment of mobile and other bills, insurance, loan, investment, credit card apply, etc., all can be done sitting online at home, neither you have to go to the bank branch nor do you have to stand in line.

As the use of internet facilities, smartphones, etc. is increasing, the use of internet banking is also increasing and today most of the people using the internet are also using internet banking.

Internet Banking is known by names like Net Banking, Web Banking, E-Banking, etc. But they all have the same meaning and that is to access banking facilities from your bank account by visiting the bank’s website or banking app through the internet.

Once you have started the Internet Banking facility, you can access your bank account and do all your banking-related work from anywhere and anytime by visiting the bank’s website.

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How To Activate Internet Banking

To start internet banking, you must have a bank account and the bank account should be in that bank that provides an internet banking facility, although in today’s time most of the banks provide the facility of net banking.

Your phone number should be registered in your bank account, then you have to go to the bank branch and fill and submit the application form for internet banking. In a few days, the bank will provide you ID and password for internet banking,

Then you have to go to the bank’s website and enter that ID and password in the login section and enter the information that is asked there, your internet banking will be activated, then you can access your bank account and can take advantage of the facilities of internet banking.

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Features Of Internet Banking

  • Through the internet banking you can access all financial and non-financial banking services.
  • You can check your bank account balance at any time.
  • You can pay your bills through internet banking.
  • You can transfer money to any of your other account or to someone else’s account.
  • You can see the statment of your all past transations.
  • It is the easy and safe way of banking.
  • You get a unique ID and password that keeps your account secure.
  • You can request for new checkbook and ATM.
  • Through internet banking you can block your old ATM at any time.
  • You can increase or decrease your transation limit.
  • You can take advantage of facilities like insurance and investment.
  • You can apply for credit card.

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Services Available On Internet Banking

  1. Balance Check – You can check your account balance anytime by accessing your bank account through Internet Banking.
  2. Fund Transfer – Through Internet Banking you can transfer funds through NEFT, RTGS and IMPS.
  3. Bank Statment – Through net banking, you can check your old transaction statement, view the statement of different time periods and also download in PDF file or take printouts of it.
  4. Utility Bill Payment – You can pay your bills like electricity bill, mobile bill, water bill etc online through internet banking.
  5. Fix Deposit – You can start or stop a fixed deposit.
  6. Checkbook/ATM Request – If your check book is exhausted or your ATM is damaged or lost then you can request for new ATM and check book through Internet Banking.
  7. Shoping Payments – If you buy anything online through any website or merchants, then you can pay it through net banking.
  8. General Insurance – You can take general insurance through your internet banking from the bank’s website or any other insurance website and pay the same through your net banking.
  9. Investment – You can invest in Mutual Funds, Stocks, Insurance policies etc and pay the same through Internet Banking.
  10. Online Ticket Booking – You can book and pay bus, train, air tickets etc online through internet banking.
  11. EMI Payments – If you have taken any loan or you pay any other installment, then you can pay it through net banking and also start auto debit so that your monthly installment will be automatically paid on time.

Apart from these, various banks provide many other services and facilities that you can take advantage of through Internet Banking.

Now we have learned what is internet banking and what type of services are available on internet banking. Now let’s find out what are the Advantages and Disadvantages Of Internet Banking.

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Advantages Of Internet Banking

What Is Internet Banking? Advantages And Disadvantages Of E-Banking Best Guide 2021

Freedom Of Time

The biggest problem with offline banking is time, most of the banks provide banking service only from 10 am to 4 pm, after that time if you get any work then you cannot do it,

But internet banking eliminates the time issues, through internet banking, you can access your bank account online and do your banking and other tasks 24*7 anytime.

Ease Of Financial Transactions

It is very easy to do bill payments and financial transactions through Internet Banking. Internet Banking provides you the facility to do all types of financial transactions.

You can do almost all types of financial transactions like fund transfer, bill payment, shopping, ticket booking, etc. very easily through internet banking.

Track All Transations

Through net banking, you can easily keep track of all the online and offline transactions from your account, you can check the transactions whenever you want.

Reconcile all past transactions with bank receipts and your ledger entries by generating statements for different time periods, you can easily see how much money has been sent or received on which date, under what name.

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Fast And Secure

Internet Banking is a fast and secure way to do all financial and non-financial transactions, so you don’t have to go to the bank branch or wait in line for your turn.

You can do all your transactions by visiting the Bank’s website or app whenever you want, you are provided with a unique ID and password to access Internet Banking,

And also you have to verify every transaction through OTP, which makes internet banking very secure.

Non-Financial Transations

In Internet Banking, you also get the facility to do other non-financial transactions along with financial transactions, you can easily check your transaction history through Internet Banking,

You can extract statements of old transactions, send requests for checkbooks, ATMs, etc., start or stop any service, and many other non-financial tasks that you can do with Internet Banking.

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Disadvantages Of Internet Banking

What Is Internet Banking? Advantages And Disadvantages Of E-Banking Best Guide 2021

Difficult For New People

For those who are new, who have just started using the Internet, or those who do not know much about the Internet, it becomes a bit difficult to use Internet Banking.

Even for those people who have no one to tell or teach, it is difficult to start and use net banking as well as there is a possibility of loss if something goes wrong.

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Need Internet

To use internet banking, a gadget such as a smartphone, laptop or computer is required and it is also necessary to have uninterrupted internet with it because without the internet the bank’s website cannot be opened,

Still, good internet facilities are not available everywhere in our country due to which problems like internet connectivity, connection failure, slow internet persist.

And if there is a problem with the internet while doing any kind of transaction, then there can be a loss of money, that is why it is very important to have the internet to use internet banking.

Security Of Transations

Admittedly, banks provide us security for doing transactions with internet banking and for all other tasks, but nothing is 100% secure on the internet, there are many such hackers and fraudsters on the internet,

Those who monitor your internet activities and steal your information through activities like hacking, phishing and can cause you financial loss.

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Security Of Password

We need ID and password to use Internet Banking, but it is also very important to keep that password safe, if someone comes to know about your password, then he can withdraw money from your account.

Due to which you can be harmed, along with this the bank advises you to change your password from time to time to keep your account safe,

It is also difficult to change and remember the password frequently and if you have forgotten the password then it is also difficult to recover it.

Things To Keep In Mind While Using Internet Banking

What Is Internet Banking? Advantages And Disadvantages Of E-Banking Best Guide 2021

Device (Mobile Or Computer)

Always use your own mobile or computer to use Internet Banking, Internet Banking should not be accessed from someone else’s mobile or computer.

If your Internet Banking ID and password are saved in someone else’s mobile or computer, and then he can access your account and cause you financial loss.

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Public Internet

Do not access your internet banking while using another person’s hotspot or public Wi-Fi as a hacker or fraudster may also be sitting by accessing the same network,

And as soon as he accesses your bank account, he can hack it and cause you harm, that’s why internet banking should be used on your data or Wi-Fi only.

Untrustable Apps

Do not install such apps or software in your mobile or computer which are not reliable because such software and apps steal your data and information and transmit it to hackers.

Internet Access

Whenever you are not doing any internet-related work on your mobile or computer, then internet access should be turned off because hackers keep spreading many viruses on the internet which can harm your system as well.

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You should always use a good antivirus on your mobile or computer because we keep visiting many websites on the internet and clicking on any links.

In which there are many virus-infected files, due to which viruses enter in our system and slow down the speed of our mobile and computer and transmit our personal information to hackers.

By using a good antivirus, these viruses do not reach our system and our system remains safe from viruses.


You should not create your internet banking password based on your name or date of birth as it is very easy for hackers to detect and guess.

You should keep a separate and slightly tough password that cannot be easily deciphered and your internet banking information is safe.

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Here we have tried to provide complete information related to Internet Banking like what is internet banking, how to activate internet banking, the advantages, and disadvantages of internet banking, and so on.

If you have any other questions related to Internet Banking, then tell us in the comment section, we will be very happy to answer your questions.

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