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Internet_Banking e commerce in banking.pptx
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- 2. Why did wechoose INTERNET BANKING?? Internet banking is becoming more and more popular among the masses. To provide more Quality Information on Internet Banking. Make the concept and procedure more familiar. To warn against its negative effects.
- 3. What is InternetBanking all about?? Internet banking means any user with a personal computer and a browser can get connected to his bank’s website to perform any of the virtual banking functions: Balance enquiry. Transfer of funds. Online payment of bills. interest, fees and taxes. Transaction details of each account. Accounts, credit card & home loan balances. Transfer funds to third party accounts you nominate. Open a deposit right from the terminal you are sitting at.
- 4. The concept ofInternet banking has been simultaneously evolving with the development of the World Wide Web. Programmers working on banking data bases came up with ideas for online banking transactions, sometime during the 1980's. In 1983, the Nottingham Building Society, commonly abbreviated and referred to as the NBS, launched the first Internet banking service in United Kingdom. This service formed the basis for most of the Internet banking facilities that followed. The facility introduced by Nottingham Building Society is said to have been derived from a system known as Prestel that is deployed by the postal service department of United Kingdom. History
- 5. History In India •ICICIwas the first bank to initiate the Internet Banking Revolution in India as early as 1997 under the brand name Infinity. • ICICI kicked off online banking way back in 1996. But even as a whole, 1996 to 1998 marked the adoption phase, while usage increased only in 1999-due to lower ISP online charges, increased PC Penetration and a Tech Friendly atmosphere.
- 6. How to accessInternet Banking? Before you can access your account online, you’ll need to register with your bank for Internet banking. Your bank will give you a registration number or login ID. You’ll also need a password (IPIN). Your Internet password is different from the PIN you use with your debit card. Once your bank has approved your registration, you’re able to access your accounts online.
- 7. STEP 1: Make sureyour computer is connected to the Internet.
- 8. STEP 2: Go toyour bank’s website. For security reasons, don’t click on a link to your bank sent to you in an email – emails with links to fake websites are a classic ploy of criminals trying to steal your identity
- 9. STEP 3: Once you’reon your bank’s website you’ll see a button or other icon labelled ‘Log on to Internet banking’ or something similar (the terminology varies from bank to bank) Click on this icon It will take you to a login page
- 10. STEP 4: Login toyour Internet account It generally requires you to enter your registration number or login ID You will also have to enter your password – either by typing it in, or by clicking on letters and numbers onscreen
- 11. STEP 5: Some bankshave a two stage authentication process ― an additional security measure to protect customers’ accounts and personal data. If a two-stage process, you’ll then have to enter another code. The code may be generated by a security token the bank gives you when you register for Internet banking, or it could be contained in an SMS message the bank sends to your mobile phone.
- 12. The Given isICICI Bank’s LOGIN Page:
- 13. STEP 6: If you’veentered the correct information at all these stages, you’ll gain access to your accounts and be able to begin your Internet banking
- 14. STEP 7: Once you’vegot online access to your accounts you’ll see the different types of transactions that you can perform . Click on a function to open it. For example, if you want to transfer funds, click on the button or icon labelled ‘Transfers’ or something similar. You’ll need to complete the required data. Remember – make sure that you have the right BSB (Bank State Branch ) code and account number for the beneficiary of the transfer, as this is the information that the bank will use to process the transfer.
- 15. STEP 8: Once you’vefinished your Internet banking, be sure to log out from your account. Most banks also have in place a ‘time-out’ feature, which means that if you’re inactive for a certain period in your Internet banking session, you’ll automatically be logged out.
- 16. Merits/Demerits of Internet Banking Merits: Convenience:Unlike your corner bank, online banking sites never close; they're available 24 hours a day, seven days a week, and they're only a mouse click away. Ubiquity: If you're out of state or even out of the country when a money problem arises, you can log on instantly to your online bank and take care of business, 24/7. Transaction speed: Online bank sites generally execute and confirm transactions at or quicker than ATM processing speeds.
- 17. Efficiency: You canaccess and manage all of your bank accounts, including IRAs, CDs, even securities, from one secure site. Effectiveness: Many online banking sites now offer sophisticated tools, including account aggregation, stock quotes, rate alerts and portfolio managing programs to help you manage all of your assets more effectively. Most are also compatible with money managing programs such as Quicken and Microsoft Money.
- 18. Demerits: Start-up may taketime: In order to register for your bank's online program, you will probably have to provide ID and sign a form at a bank branch. If you and your spouse wish to view and manage your assets together online, one of you may have to sign a durable power of attorney before the bank will display all of your holdings together. Learning curve: Banking sites can be difficult to navigate at first. Plan to invest some time and/or read the tutorials in order to become comfortable in your virtual lobby. Bank site changes: Even the largest banks periodically upgrade their online programs, adding new features in unfamiliar places. In some cases, you may have to re-enter account information. The trust thing: For many people, the biggest hurdle to online banking is learning to trust it. Did my transaction go through? Did I push the transfer button once or twice? Best bet: always print the transaction receipt and keep it with your bank records until it shows up on your personal site and/or your bank statement.
- 19. Services provided underinternet banking Online Bill Payment Personal Home Page Ticket Booking Prepaid Mobile Recharge Market Watch Investment Services Online Applications Personal updates
- 20. SECURITY RISK OFINTERNET BANKING Use of Trojan Horse programs to capture user IDs and passwords. Increasing number of fraudulent bank websites. Fake emails purporting to be sent from banks. Hackers who hack into personal bank accounts and steal money.
- 21. Nowadays a largenumber of fraudulent websites are coming up which aim to trick persons into disclosing their sensitive personal information. Fraudulent Bank Websites
- 22. Viruses and Worms–Trojan Horse Program
- 23. Fake Emails Emailsare send by Fraudulent bank. Customer’s verify the personal information. These Emails Guide customers and make them enter the fraud links. Thereby Disclosing the customer’s ATM card numbers and their passwords This method is also known as Phishing. In the field of computer security, phishing is the criminally fraudulent process of attempting to acquire sensitive information such as usernames, passwords and credit card details by masquerading as a trustworthy entity in an electronic communication
- 24. Here is anexample of this bank warning its customers of the fake emails they can receive:
- 25. Hackers Pharming is ahacker's attack aiming to redirect a website's traffic to another, bogus website. In recent years both pharming and phishing have been used for online identity theft information. Pharming has become of major concern to businesses hosting ecommerce and online banking websites. Sophisticated measures known as anti-pharming are required to protect against this serious threat. Antivirus software and spyware removal software cannot protect against pharming.
- 26. Conclusion Internet bankingis changing the banking industry and is having the major effects on banking relationships. The net banking, thus, "now is more of a norm rather than an exception in many developed countries" due to the fact that it is the economical way of providing banking services. Banking is now no longer confined to the traditional brick and mortar branches, where one has to be at the branch in person, to withdraw cash or deposit a cheque or request a statement of accounts. Providing internet banking is increasingly becoming a 'need to have' than a 'nice to have' services.
- 27. The Legal Structureof E-Banking In India
- 28. Reserve Bank ofIndia minimum standards on e-banking following were the minimum benchmarks of security set up by the RBI:
- 29. 1.Highly encoded 128 BitSecurity Socket Layer based digital signatures for authentication purposes. Every bank should have Security Officer solely dealing with information technology and shall work towards the execution of the rules made under the IT Act, among other things, the Board of Directors shall approve the security policy that is adopted by the bank.
- 30. At that timelogin id, password, biometric verification were new notions, hence the banks were asked to adapt to such new concepts wherein the bank must make sure that Internet and Digital Banking System respects the security and privacy by maintaining a line of proxy server-based firewall. All the security structures were to be tested before any kind of Internet Banking facility was available, whereas the upgradation, bug removal and other security software were deemed necessary to be installed.
- 31. Any security fissurewhich might open up during the E-banking must be reported and taken care of at the earliest possible opportunity and future policies should be framed while keeping in mind security fissures that are incurred from time to time. Meanwhile, the burden lies upon the bank to keep both encoded and decoded records of all the transactions and messages received during e-transactions.
- 32. Information Technology Act,2000 (“IT Act”) E-banking is mainly regulated by the Banking Regulation Act, 1949 and the Reserve Bank of India Act, 1934 but all sorts of cybercrimes and electronic payment related systems are regulated by the IT Act and the important features of the IT Act which should be noted are:
- 33. The legislative intentbehind the IT Act is to enable e-commerce and governance wherein all electronic documents and digital signatures are recognized under IT Act which should be retained and analysed properly by the bank because all contracts and electronic transactions are lawful and enforceable under this Act.
- 34. No e-banking transactioncan survive if it is not in conformity with the provisions of the IT Act because the protection of privacy and crypto function-based authentication of E-transactions can only take place under the umbrella of this Act as theft of data via unethical means of hacking, creation and spreading of the virus is punishable under this Act. In fairness, the Act also grants immunity to prevent harassment to Internet Service Providers and intermediaries over the illegal activities committed on their networks.
- 35. With the immunitygranted, a duty is cast on the Bank (intermediary) to keep a record and conserve the same as directed by the Central Government from time to time, meanwhile the violation of security or privacy of E-transactions during sign-in, password typing, and other confidential information is protected under the aegis of this Act, wherein any violation thereof has been made punishable.