Question

3. What is e-banking. What are the advantages of e-banking?​

Answer 1

Explanation:

i) e-banking provides 24 hours, 365 days a year services to the customers of the bank. (ii) It lowers the transaction cost. (iii) It inculcates a sense of financial discipline and promotes transparency. (iv) Customers can make the transactions from office, home or while travelling via cellular phones.

Answer 2

E-banking refers to electronic banking. It’s like e-business in the banking industry. Electronic banking is also known as “Virtual Banking” or “Online Banking”. Electronic banking is based on banking based on information technology. Under this I.T system, banking services are delivered through a computer-controlled system. This system involves a direct interface with customers. Customers do not have to visit the bank’s facilities.

Advantages of E-Banking : –

The main advantages of electronic banking are: –

1.The cost of operation per unit of services is lower for banks.

2.Offers convenience to customers since they are not required to go to the bank’s facilities.

3.There is a very low incidence of errors.

4.The customer can obtain funds at any time from ATMs.

5.Credit cards and debit cards allow customers to get discounts at points of sale.

6.The customer can easily transfer the funds from one place to another place electronically.

Disadvantages:-

1.Savings and credit cooperatives, and in particular small local cooperatives, strive to match the level of convenience (ATMs and branches) that many banks offer their customers, although many are part of shared networks that increase channels available to its members

2.Some Credit Units are limited in their product offerings

3.One must qualify for membership

4.One must pay a membership fee to join