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Commerce · Ch 5 — Banking Services

E-Banking and Digital Payment Systems

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E-Banking and Digital Payment Systems

Banking today is delivered as much through a screen as across a counter. Electronic banking (e-banking) refers to the delivery of banking services and the conduct of banking transactions through electronic channels rather than in person at a branch.

  • Automated Teller Machine (ATM) — an unattended electronic machine that lets a customer withdraw cash, check balances, deposit cash or a cheque, and carry out several other routine transactions at any time, without a branch visit.
  • Internet banking — lets a customer log in to their account through a secure website and carry out transactions such as checking balances, transferring funds and paying bills, without visiting the bank.
  • Mobile banking — the same range of services delivered through a smartphone application, allowing banking from virtually anywhere.
  • National Electronic Funds Transfer (NEFT) — an electronic system for transferring funds between bank accounts anywhere in the country, processed in batches at fixed settlement times through the day.
  • Real Time Gross Settlement (RTGS) — meant for large-value transfers, settled individually and continuously in real time rather than in batches, making it faster but generally restricted to transfers above a set minimum amount.
  • Unified Payments Interface (UPI) — allows instant transfer of funds between bank accounts using just a mobile number or a simple payment address, without sharing full account or card details each time. …
Definition 1E-banking

The delivery of banking services and conduct of banking transactions through electronic channels such as ATMs, the internet and mobile applications, rather tha …

Definition 2NEFT

An electronic system for transferring funds between bank accounts anywhere in the country, processed in periodic …

Definition 3RTGS

An electronic funds-transfer system for large-value payments, settled individually and continuously in real time ra …

Definition 4UPI

A system enabling instant transfer of funds between bank accounts using a mobile number or payment address, without exchanging full ac …