Page 239 - DMGT303_BANKING_AND_INSURANCE

Banking and Insurance

Notes
 E-mail alerts
 FedFast

 RTGS –FedFlash
 FedEpay
 Cash management system (CMS)

Source: http://www.infosys.com/finacle/customers/case-studies/Pages/federal-bank.aspx

11.19 Summary

Online banking (or Internet banking) allows customers to conduct financial transactions on a
secure website operated by their retail or virtual bank, credit union or building society.
The system is updated immediately after every transaction automatically. In other words, it is
said that it is updated 'on-line, real time'. Through net banking one can check the status of his/
her account, place queries and also can be facilitated with a wide range of transactions
simultaneously.
Debit cards allow for direct withdrawal of funds from a Customer's bank account. The spending
limit is determined by the user's bank depending upon available balance in the account of user.
It is a special plastic card connected with electromagnetic identification that one can use to pay
for things purchased directly from his bank account.
Credit cards in India are gaining ground. A number of banks in India are encouraging people to
use credit card. Diners Club and American Express used the concept of credit card in 1950 with
the launch of charge cards in the USA. Credit card however became more popular with use of
magnetic strip in 1970.
A major driving force behind the rapid spread of internet banking all over the world is its
acceptance as an extremely cost effective delivery channel of banking services as compared to
other existing channels. However, Internet is not an unmixed blessing to the banking sector.

11.20 Keywords

Credit Card: A card that entitles its holder to buy goods and services based on the holder's
promise to pay for these goods and services.
Debit Card: A debit card (also known as a bank card or check card) is a plastic card which
provides an alternative payment method to cash when making purchases. Functionally, it can
be called an electronic check.
Online banking (or Internet banking): It allows customers to conduct financial transactions on a
secure website operated by their retail or virtual bank, credit union or building society.
Operational Risk: An operational risk is a risk arising from execution of a company's business
functions. As such, it is a very broad concept including fraud risks, legal risks, physical or
environmental risks, etc.
Paper Money: Currency in the form of government notes and bank notes.

Plastic Money: Generic term for all types of bankcards, credit cards, debit cards, smart cards, etc.
Tele-Banking: Tele-banking services help customers to avail banking services right from their
home.

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