e-Banking

Anmol

Compiled By:-

Online banking (or Internet banking or E-banking) allows customers of a financial institution to conduct financial transactions on a secured website operated by the institution, which can be a retail bank, virtual bank, credit union or building society.

To access a financial institution's online banking facility, a customer having personal Internet access must register with the institution for the service, and set up some password (under various names) for customer verification. The password for online banking is normally not the same as for [telephone banking]. Financial institutions now routinely allocate customers numbers (also under various names), whether or not customers intend to access their online banking facility.

To access online banking, the customer would go to the financial institution's website, and enter the online banking facility using the customer number and password. Some financial institutions have set up additional security steps for access, but there is no consistency to the approach adopted.

PREFERRED BANKING METHOD

IN 2009 IN 2013

FEATURES

Viewing account balances Viewing recent transactions Downloading bank statements, for example in PDF

format Viewing images of paid cheques Ordering cheque books Download periodic account statements Downloading applications for M-banking, E-banking

etc.

NON-TRANSACTIONAL TASKS

Funds transfers between the customer's linked accounts

Paying third parties, including bill payments (see, e.g., BPAY) and telegraphic/wire transfers

Investment purchase or sale Loan applications and transactions, such as

repayments of enrollments Register utility billers and make bill payments

TRANSACT BANKING TASKS

Personal financial management support, such as importing data into personal accounting software. Some online banking platforms support account aggregation to allow the customers to monitor all of their accounts in one place whether they are with their main bank or with other institutions.

Unique Internet Banking Services Offered By Some Financial Institutions

The precursor for the modern home online banking services were the distance banking services over electronic media from the early 1980s. The term online became popular in the late '80s and referred to the use of a terminal, keyboard and TV (or monitor) to access the banking system using a phone line.

Online services started in New York in 1981 when four of the city's major banks (Citibank, Chase Manhattan, Chemical and Manufacturers Hanover) offered home banking services using the videotex system. Because of the commercial failure of videotex these banking services never became popular

The UK's first home online banking services known as Homelink was set up by Bank of Scotland for customers of the Nottingham Building Society (NBS) in 1983. The system used was based on the UK's Prestel viewlink system and used a computer, such as the BBC Micro, or keyboard connected to the telephone system and television set.

Stanford Federal Credit Union was the first financial institution to offer online internet banking services to all of its members in October 1994.

Today, many banks are internet only banks. Unlike their predecessors, these internet only banks do not maintain brick and mortar bank branches. Instead, they typically differentiate themselves by offering better interest rates and more extensive online banking features.

HISTORY

Security of a customer's financial information is very important, without which online banking could not operate. Financial institutions have set up various security processes to reduce the risk of unauthorized online access to a customer's records, but there is no consistency to the various approaches adopted.

Ways Adopted For The Security Of User’s Transaction Info

The PIN/TAN system where the PIN represents a password, used for the login and TANs representing one-time passwords to authenticate transactions. TANs can be distributed in different ways, the most popular one is to send a list of TANs to the online banking user by postal letter. Another way of using TANs is to generate them by need using a security token.

Signature based online banking where all transactions are signed and encrypted digitally. The Keys for the signature generation and encryption can be stored on smartcards or any memory medium, depending on the concrete implementation.

ATTACKS Attacks on online banking used today are based on deceiving the user to

steal login data and valid TANs. Two well known examples for those attacks are phishing and pharming.

A method to attack signature based online banking methods is to manipulate the used software in a way, that correct transactions are shown on the screen and faked transactions are signed in the background.

Another kind of attack is the so-called Man in the Browser attack, where a Trojan horse permits a remote attacker to modify the destination account number and also the amount.

As a reaction to advanced security processes allowing the user to cross check the transaction data on a secure device there are also combined attacks using malware and social engineering to persuade the user himself to transfer money to the fraudsters on the ground of false claims (like the claim the bank would require a "test transfer" or the claim a company had falsely transferred money to the user's account and he should "send it back"). Users should therefore never perform bank transfers they have not initiated themselves.

VIRUSES

COUNTERMEASURES

There exist several countermeasures which try to avoid attacks. Digital certificates are used against phishing and pharming, the use of class-3 card readers is a measure to avoid manipulation of transactions by the software in signature based online banking variants. To protect their systems against Trojan horses, users should use virus scanners and be careful with downloaded software or e-mail attachments.

In 2012 the European Union Agency for Network and Information Security advised all banks to consider the PC systems of their users being infected by malware by default and therefore use security processes where the user can cross check the transaction data against manipulations like for example (provided the security of the mobile phone holds up) SMS TAN where the transaction data is send along with the TAN number or standalone smartcard readers with an own screen including the transaction data into the TAN generation process while displaying it beforehand to the user (see chip TAN) to counter man-in-the-middle attacks.

E-FACILITIES OFFERED BY A WELL KNOWN BANK

Transfer funds Electronic funds transfer (EFT) is the electronic

exchange, transfer of money from one account to another, either within a single financial institution or across multiple institutions, through computer-based systems.

IMPS The IMPS (Immediate Payment Service) from ICICI Bank helps

you access your bank account and transfer funds instantly and securely. You can send money using ICICI Net banking on an internet-powered laptop or PC. They enable you to transfer funds from your ICICI account to any ICICI or non-ICICI account. The beneficiary account is credited immediately when a fund transfer request is made from your side.

TRANSFERS

Receive Funds Receiving money from another bank’s account into your

account is called fund receiving.

Donating money Through GiveIndia, ICICI Bank now provides you the facility

to make a difference to India's underprivileged - online, anytime, from anywhere. Choose from over 140 NGOs that have met high standards of credibility. When you use GiveIndia's online donation platform and complete your donation, you will immediately receive a receipt from GiveIndia, which can be used for tax purposes. What's more - you will also get a feedback report six months later on how your money has been utilized. Never before has it been so easy and convenient to reach out and help the needy! Make all your donations from the convenience of your home or office with Quick Donate.

Pay bills We can pay bills from the comfort of our home or office. This

is a facility ideal for our electricity, telephone, mobile and other bills. Do away with cheques, late payments and lost bills, and enjoy the convenience!

Quick Pay ICICI Bank Quick Pay is the easiest and smartest way to

manage and pay your utility bills online anytime, anywhere. What makes Quick Pay so convenient , is that it doesn't need any registration !!! So do away with writing cheques or standing in queues to pay all your utility bills. Make all your bill payments from the convenience of your home/office with Quick Pay.

Bill Payments

Online Mobile Recharge Now you no longer need to rush to the vendor for buying prepaid mobile recharge codes, every time your talk time runs out. Just top-up your prepaid mobile cards by logging into Internet Banking on ICICIBank.com. What's more, this online mobile recharge service is absolutely free for all ICICI Bank Account holders.

Recharge DTH Connection Recharge your DTH Connection from the comfort of your home or office, anytime, anywhere with Prepaid Recharge Facility on ICICIBank.com. What's more, this service is absolutely free for all ICICI Bank Account holders.

Invest@ease Invest@ease helps you to: Initiate purchase / sale of Mutual Funds online Start a Systematic Investment Plan (SIP Mutual Funds) Switch your Investments between Mutual Funds Redeem your Mutual Fund

Investments online Track your Portfolio online

Insurance Policy At ICICI Bank, they understand our financial needs. Along with deposit and

loan products, they offer us a variety of insurance plans that include Life Insurance, General Insurance, Car Insurance, Home Insurance, Travel Insurance, etc. Their "Buy Online" feature provides us the ease and convenience of completing our transactions entirely online without having to move out of our desk.

INVEST & INSURE

Trade Shares Online

Trading shares online is another facility offered by the ICICI bank, which is not offered by much banks in India.

THANK YOU