Redbancaria

While internet banking is fairly safe if used for read only transactions like checking the bank balance or cheque status, certain precautions have to be taken if internet banking is used for online transactions like purchase of products or transfer of funds to another bank account. If the fund transfer is to another account within the same bank, the customer has a chance of getting it reversed if there is a fraud or bank error and the funds are transferred to another bank, it may be difficult for the customer to get his money back.

To reduce online fraud and scams, banks take several precautions. Internet banking passwords expire after a certain number of days. Though this is inconvenient for the customer who has to change and remember a number of passwords, this reduces the chances that the account will be hacked. For fund transfers, banks usually have a separate password, and sometimes the customer has to specifically apply for this password.

Bank customers should also take certain precautions while accessing their online banking account. They should login to their account only from their home computer, accessing from cyber cafes is risky since there may be key loggers installed which will store the user name and password typed in. Customers should also not click on links in phishing emails which appear to be sent by their bank.

Till a decade ago, for most banking transactions,the customer had to visit the bank branch. As internet usage increased, banks started offering internet banking facilities to their customers. Initially only banks with fully computerized and networked branches could offer internet banking, but later most banks computerized their systems and could offer this facility.

Internet banking is advantageous to both the customer and the bank. Often a customer has to visit the branch just to check the status of the check deposited or issued. Banking hours are limited to 6-7 hours on working days for most banks, so it often becomes inconvenient for a customer who has a regular job to visit the bank often. By using internet banking, the customer can check the status of the cheque online at any time as per his or her convenience.

Banks also benefit from internet banking, since the same number of employees have to handle fewer queries from the customer. This reduces overheads and expenses, so most banks provide free internet banking facilities. They also hold many promotional programs for customers who use internet banking to check their balance as well as to make purchases and payments online.

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