First it is in the form of ATM’s and phone transactions. Recently it transformed to internet a new channel between customers and banks which benefits both. The main aim of e-banking services is to provide the customers a much faster services with low cost. From the last twenty years, banking sector has chosen a new method of banking based on the progress of information technology. In addition to these customers, transaction and communication abilities are fastened based on information technology.
The progress of electronic banking started with use of automatic teller machines and afterwards it developed to online banking. In the future it will be done in mobile phones(wap-enabled).Anyway online banking continues to be the best for financial transactions.
E-banking provides many advantages for banks and customer’s. E-banking has made life much easier and banking much faster for both customers and banks.
Electronic funds transfer means computer systems are used to perform financial transactions electronically. The EFT is used for electronic payments and customer initiated transactions where the cardholder pays using credit or debit card.
The transaction types are, Withdrawal,deposit,interaccount transfer ,inquiry, administrative transactions that covers non financial transactions including PIN change. Electronic Fund Transfer transactions needs authorisation and a means to match the card and card holder.EFT transactions require the cardholder’s PIN to sent online in encrypted form for validation by the issuer of the card.Other information may include the card holders address or the CVV2 security value printed on the card.
Electronic funds transfer transactions are activated during e-banking procedures.
A Guest Editorial