Netbanking or internet banking is an umbrella term under which many banking services are provided by banks. Netbanking means banking through internet using a computer or a mobile device. Be it SBI Netbanking, HDFC Netbanking or DCB Netbanking, all these facilities are umbrella terms under which these banks provide services like: balance check, mini statement, account statement, fund transfer (interbank and intrabank), adding beneficiary and more.
How Netbanking Works?
To use internet banking or netbanking, the following are the prerequisites:
- Secure Internet connection
- Computer or Mobile Phone
- Active Login ID (or Customer ID)
- Active Login Password
Once you have these, accessing netbanking becomes a smooth run.
Features of Net Banking
The following-mentioned are some of the important features of internet banking:
|24×7 availability||Password-protected (2-factor authentication in some banks)||Easy access to banking services from anywhere|
|Tracking of fund transfers||Tracking of latest transaction anytime||Balance check|
|Bill Payments||Option to set/cancel standing instructions||Eliminates bank visits|
|OTP protected transaction||Option to change password||Option to update address|
– These are some of the basic features of netbanking provided by most of the banks in India. Depending on your bank, these may differ.
What is e Banking?
Before we move further into the features and benefits of internet banking, it is imperative to understand the umbrella term – e Banking. e Banking is when banking services are performed electronically. Here, we must not mix electronic banking with internet banking. While the internet banking is done only when one is online, electronic banking is a broader term which includes net banking within it.
What is the Difference Between Net Banking and E Banking?
Netbanking is a type of e banking but e banking is not net banking. Confused? Let’s understand it with the following example:
Take the case of NEFT – It can be done online as well as offline. When done online, you can choose either netbanking or mobile banking to transfer funds via NEFT online.
But, when we say offline, it means you’ll be going to the bank, fill an NEFT form and make the fund transfer either in cash or cheque/DD. Alternatively, you also have the option to direct your bank to deduct money from your bank account without you having to provide cash/cheque. This request will be processed electronically only. The beneficiary will get the money in their bank account electronically – without having to present any cheque and neither will the bank pay them the amount in cash.
Other examples of e Banking include ATM banking where you can withdraw cash, check your bank balance, change your debit card PIN and submit cash/cheque etc. along with using debit cards or credit cards for various banking services.
Netbanking: Services Available
- Check account balance
- View/Download mini statement
- View/Download account statement
- Transfer funds (intrabank or interbank) via NEFT, RTGS, IMPS, etc.
- Pay utility bills (electricity, water, phone bills, etc.)
- Add beneficiaries
- Pay credit card bills
- Apply for cheque book
- Apply for general insurance
How to Register for Netbanking?
Offline Netbanking registration process:
Visit your bank’s base branch, i.e. where you opened your account, and request for activation of the internet banking services. The bank representative will most likely ask you to fill the application form and submit the same with your ID proof, residence proof and your passport-sized photograph. Most of the banks send the login details via post and mail, both in a week.
Online netbanking registration process:
If you have an active debit card, you can register for netbanking services online. This self-registration option is available in many banks. You need to provide your debit card details, registered mobile number, email ID, etc. to apply for netbanking services. After your request is processed, you bank will send you a confirmation mail to your registered email ID along with your login details.
How to Log in to Net Banking?
To log into your bank’s netbanking portal, you need the following details:
- Login ID (or Customer ID)
- Captcha (verification code for security purposes)
Go to your bank’ netbanking login portal and enter the above-mentioned details to log in.
How to Reset Netbanking Password?
If you have forgotten your netbanking login password, there’s nothing to worry. Most of the banks provide online facility to reset the netbanking login password. Just go to your banks netbanking portal and look for the option to reset password. Click on it and you will be taken to the password reset form. Enter the details asked (login or customer ID, registered mobile number, etc.). You may also be asked to enter an OTP (this will be sent to your registered mobile number and/or email ID) to complete resetting the netbanking login password.
Types of Fund Transfers available on Net Banking
The following types of fund transfers are available via netbanking:
Types of Fund Transfers
|Within Own Accounts|
This is when you have more than one account in the same account and you wish to move funds from your one account to another, within the bank
For such transfers, there is no need of NEFT, RTGS or IMPS since there’s no third party involved here.
|To Other Bank Account(s)|
This is the type of transfer from one bank account to another bank account
Here, you need to choose from NEFT, RTGS or IMPS
Modes of Fund Transfer
NEFT or National Electronic Funds Transfer is a popular way of transferring any amount of money from your bank account to another bank account.
The minimum amount is Re 1 while the maximum is unlimited as set by the RBI. However, some banks have put ceilings on the maximum NEFT amount when using the online mode. Check NEFT Limit here.
RTGS or Real Time Gross Settlement is another electronic way of transferring funds from one bank account to another bank account.
The transfer amount must be a minimum of Rs 2 lakhs to use RTGS.
|IMPS (P2P and P2A)|
This is an online option of transferring money from your bank account to another account.
The minimum amount is Re 1 while the maximum IMPS limit is Rs 5 lakhs, as set by the NPCI.
How to Transfer Funds using Netbanking?
Fund transfer or money transfer via netbanking or internet banking is more or less the same across banks. We are giving a basic idea as to how to transfer money using netbanking:
- Go to your banks’ netbanking portal
- Enter login details and proceed
- Find “Fund Transfer” or similar section
- Select the transaction type (to own account, within same bank, other bank account)
- Select or add beneficiary
- Enter account details (for debit A/c and credit A/c, both)
- Enter transaction amount and add remarks
- Enter OTP received on your registered mobile number or transaction password (whichever is the case) to send funds
Advantages of Netbanking
There are many benefits of using internet banking, viz.:
- 24×7 Availability
This is the most important feature and advantage of netbanking. There are no time limitations to using netbanking as all you need is internet connection, mobile/computer and your login details to use netbanking. You can avail netbanking services on bank holidays or public holidays as well.
Netbanking or internet banking is a highly secure way of banking. RBI ensures that every bank takes care of password-protected netbanking services. Some of the banks like SBI exercise two-factor verification (password and OTP) to further the safety.
- Tracking made easy
Customers can check their fund transfer status and also the status of cheque deposits. Along with it, customers are provided with the option to check latest transactions, mini statement as well as bank statement.
- Fund Transfers
Customers can make NEFT transfers, RTGS transfers and IMPS transfers using the netbanking services. These transfers can be done to the same bank’s account(s) or to other bank’s account(s).
Check Net Banking process for the following banks:
Netbanking – FAQS
Netbanking is using banking services via internet – online banking services.
Internet banking is many times referred to as netbanking as well. Both, netbanking and internet banking are same and thus, interchangeable.
To use netbanking services, customers need active netbanking login ID or User ID or Customer ID and Password/PIN. Some banks like SBI have added an extra layer of verification by the way of OTP.
Netbanking can be used to check balance, view detailed account statement, transfer funds (interbank and intrabank), pay credit card bills, pay utility bills and more.
Customers can visit their bank’s base branch for offline internet banking registration. Some banks provide online registration of netbanking as well. This is usually using the customer’s active debit card (of the same bank) and registered mobile number and email ID.
You can reset your netbanking login password easily using your bank’s netbanking portal. It can also be done using ATM (specific to some banks).
You can use the netbanking services on any day, regardless of any holiday.
Yes. Netbanking or internet banking works via internet only. That said, it is important to use a safe internet connection. You must use only your mobile data connection or your home WiFI for netbanking. Never use public WiFi for internet banking. This can compromise your account security.
Depending on your bank, customer ID may be used for netbanking login. For example, HDFC Bank allows customers to use their Customer ID as netbanking login ID.
No. Netbanking is done through the bank’ official website whereas, as the name suggests, mobile banking is banking via mobile phone. Mobile banking is available on your bank’s mobile banking app which can be downloaded on your mobile phone. For netbanking, you will have to go to bank’s website and then navigate to the bank’s login portal.
Corporate netbanking is for customers who have a corporate account with the bank. While individuals have retail bank account, partnership firms/proprietors/HUFs/limited companies have corporate bank accounts. Therefore, their internet banking portal is also different and is called as corporate netbanking portal.