e-banking refers to electronic banking or banking using electronic media. Thus, e-banking is a service provided by banks that enables a customer to conduct banking transactions, such as checking accounts, applying for loans or paying bills over the internet using a personal computer, mobile telephone or handheld computer.
e-banking includes a range of services like Electronic Funds Transfer (EFT), Automated Teller Machine (ATM), Electronic Data Interchange (EDI), Credit Cards and Electronic or Digital Cash.
Advantages of e-banking
(i) e-banking provides 24 hours, 365 days a year services to the customers of the bank.
(ii) It lowers the transaction cost.
(iii) It inculcates a sense of financial discipline and promotes transparency.
(iv) Customers can make the transactions from office, home or while travelling via cellular phones.