Net Banking: Definition, Features and How It Works

Net banking is a way to bank online. It is a fast, secure, and convenient way to transact. You can do your banking transactions online at any time of day or night. You can also access your account information from any device using the internet. This article will go over the Net Banking Definition, Features, and How It Works.

Features of Net banking

Here are a few features of using net banking:

  • Check your account statement online anytime and anywhere from your device
  • Transfer funds easily
  • Pay utility bills via the net banking app
  • Apply for loans or credit card
  • Purchase insurance, other savings plan
  • Open FD account
  • Manage or update account information such as an address, mobile number, email ID, etc
  • Pay loan EMI or credit card bill
  • Order cheque book
  • Block card to avoid any unauthorized transaction
  • Set transaction limits on debit and credit cards
  • Order a new debit or credit card
  • Recharge mobile or DTH account
  • Change card pin
  • Apply for a Forex card

The list can contain more features; however, the available features will depend on the bank’s net banking website and app. Check their website or app, or contact their support team to know more about the available features

Advantages of Net banking

Convenient: Net banking is a type of banking where customers can conduct banking transactions using the internet. Net banking allows customers to access their bank accounts, make transactions, and receive alerts from their bank. Customers can also use net banking to manage their finances.

Ease of banking: It’s easy to use the net banking app or website. It saves a lot of time which is required in case of a bank visit.

24×7: Net banking is available 24×7, and users can transact or perform any other task at any time from their devices.

Effective finance management: One can manage their finances easily using net banking. Most of the bank-related tasks can be performed via net banking and their account information can be checked easily with real-time updates.

Secure: Additionally, online banking offers a number of security features, such as two-factor authentication, a pin, a user ID, and a password to log in to your net banking.

Must Read: Savings Account Definition, Types, and Benefits

Disadvantages of Net banking

Internet availability: Without the internet, net banking features can not be used. If you are in remote areas with no internet, or poor internet connection, you will not be able to use net banking properly.

Bank server down: Bank’s server can be down or under maintenance due to any reasons. In those times you won’t be able to use the net banking features totally or partially. Check out any email or mobile notification where banks generally provide information on any scheduled maintenance in advance.

Beginners: People with less exposure to the internet, advanced electronic devices, or with limited educational background, it’s difficult for them to understand and operate net banking. They often take help from other family members or employees from the nearest branch.

Prone to fraud: Though banks have now integrated advanced technology to fight cyber attacks, we still see scams or hacks related to transactions. Fraudulent transactions can happen when someone uses your personal and financial information to make a purchase or withdraw money from your account without your consent. They may also try to change the amount of money you are sending or receiving to make it look like a larger or smaller transaction, or they may try to use your account number to make a fraudulent purchase.

Tips to use net banking safely

Here are some useful steps to secure your online banking transactions:

  • Always use a strong password and not any easy or common password
  • Do not share your password with anyone
  • Do not write your password anywhere which is easily accessible to others
  • Change your password on a regular basis
  • Do not use your net banking login credentials on any other platforms
  • Keep your mobile, and laptops up-to-date and virus proof
  • Do not use public or untrusted sources of the internet for personal use
  • Use two-factor authentication on the net banking account

Steps to Open Net Banking in a Bank

The steps to open net banking in a bank typically include the following:

  • Visit the bank’s official website: Go to the website of your bank and look for the option to register for net banking.
  • Fill out the registration form: Fill out the registration form on their official website or in the mobile app with your personal and account information (Your name as per the bank documents or passbook, bank account number, contact information, address, debit card number, etc)
  • Verify your identity: You can verify your identity at their branch or online by receiving OTP on your registered mobile number and email address.
  • Set up your login credentials: After providing all the required details and verifying your identity set up your user id and password or pin.
  • Activate the service: Follow the instruction given in the website or app to know how to activate various net banking services. For any assistance with the net banking registration, and activation process it’s recommended to take the bank’s support directly to avoid any inconvenience. You can visit their website, contact them via chat/phone/email or visit the nearest branch for the same.
  • Log in to the net banking portal: Once the service has been activated, you can log in to the net banking portal using your login credentials to access your account information and perform online transactions.

Note: The exact steps to open net banking may vary depending on the bank and your location. Please contact you bank directly for any clarification required during the process.

FAQs related to net banking

Is net banking and UPI the same?

UPI is for fund transfer (peer-to-peer or merchant payment), wherein Net banking gives you the option to transfer funds, apply for loans and credit cards, manage your account, update your address and contact information, change your card PIN, and many more.

Can we use net banking on mobile?

Yes, mobile banking can be used using bank mobile apps. You can download it from the Google or Apple app store, sign in to your net banking account and use it.

Is Google pay net banking or UPI?

Google pay is a digital payment app where you can send/receive funds by adding your bank account/UPI ID. You can’t use it as a net banking app as it doesn’t allow you to access your net banking account.

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