IndexElectronic funds transfer (EFT)ATMsDebit cardsCredit cardsDebit cardsSmart cardsPayment and settlement systems and information technologyE-banking functionsA robust and effective is the backbone of an economy. A country's economy can function smoothly and without too many problems if the banking system that supports it is not only flexible but also capable of dealing with new challenges posed by technology and other external and internal factors. The importance and role of information technology in achieving this positive goal cannot be undermined. Technology is the key to the future success of Indian banks. “Electronic banking” is therefore the need of the hour. Say no to plagiarism. Get a tailor-made essay on the topic "Why violent video games should not be banned"? Get an Original Essay Online Banking, also known as E-Banking or Internet Banking, is an electronic payment system that allows customers of the bank and other financial institutions to conduct various types of financial transactions through the bank's website. E-Banking has made it possible to conduct financial transactions with the click of a mouse. Banks provide a wide range of e-banking solutions to customers and financial institutions such as checking account balance, electronic fund transfer, ordering checkbooks, bank statements, etc. Therefore, e-banking the banking industry provides a variety of services to customers and financial institutions at the click of a mouse. A lot of technology is used to provide electronic banking solutions. Electronic Funds Transfer (EFT) This feature allows you to make payments to account holders of other banks efficiently and quickly. Unlike physical clearing, where checks are cleared upon presentation of the physical instrument at the clearing house, in EFT transactions are settled electronically. EFT also offers you the opportunity to move your collections to an electronic platform, where you can instruct your dealers to pay via EFT, thus reducing the time it takes to realize funds. At present the electronic funds transfer service is available in two modes and you can avail one of the following modes to transfer your funds: National Electronic Funds Transfer (NEFT): This is the fastest mode of fund transfer where the funds are credited to the beneficiary's account on the same day. It is offered by the computerized branches of some banks. EFT: This is the normal electronic funds transfer service offered by banks. It is similar to NEFT in all aspects except the transaction cycle time: an EFT transaction takes a minimum of 3 business days to be credited to the beneficiary's account, whereas in NEFT the amount is credited on the same day as the transaction. The end-to-end transaction can be done via our corporate electronic banking system where the request can be submitted online, as a single transaction or via file upload. ATMs ATMs are installed, nowadays, in every nook and corner in most towns and cities. These are meant for balance inquiries, cash withdrawals and many other services depending on the bank's policies. This requires a valid customer ID and password to log in and is therefore safe to use. Despite the use of ATM cards, debit cards can also be used at ATMs. Debit Cards Debit cards are another advanced technology of electronic banking, nowadaysof today. These cards are multi-purpose cards and can be used at ATMs to check your balance and withdraw cash or they can be used to make purchases easily at various ATMs. Debit cards ensure that the amount is automatically deducted from your account by simply scratching it on the machine. It makes it easier for consumers to make purchases and even carry cash with them. Credit Cards Credit cards, unlike debit cards, provide credit to consumers. A credit card is a type of retail transaction credit and settlement system, named after the small plastic card issued to users of the system. A credit card is different from a debit card in that it does not withdraw money from the user's account after each transaction. In the case of credit cards, the issuer lends money to the consumer (or user). It is also different from a charge card (although this name is sometimes used by the public to describe credit cards), which requires payment of the balance in full each month. In contrast, a credit card allows the consumer to "roll" their balance, at the cost of being charged interest. Most credit cards have the same shape and size, as specified by the ISO 7810 standard. Charge Cards A charge card is a means of obtaining a very short-term loan (usually around 1 month) for a purchase. It is similar to a credit card, except that the contract with the card issuer requires that the cardholder must pay the charged charges in full each month; There is no "minimum payment" other than the full balance. Since there is no loan, there is no official interest. A partial payment (or failure to pay) results in a serious late fee (up to 5% of the balance) and possible limitation of future transactions or even cancellation of the card. Smart Card A card used to store and retrieve personal information, is normally the size of a credit card and contains electronic memory and possibly an embedded integrated circuit. The card can be used to perform many tasks: Verify the cardholder to be able to access the systems. Storing a Patient's Medical Records Storing Digital Money To use a smart card, either to extract information from it or to add data to it, you need a smart card reader, a small device into which you insert the smart card. Payment and settlement systems and information technology The development of payment and settlement systems that meet the best international standards has been a key objective of the Reserve Bank. During 2003-2004 a milestone was crossed with the initiation of Real Time Gross Settlement (RTGS) as an available tool for quick, safe and secure electronic mode of fund transfer. Another important development was the preparation of the bill on payment and settlement systems. The legislation aims to provide a strong legal basis to the various payment and settlement systems operating in India and empowers the Reserve Bank to regulate and supervise such systems. It outlines the significant expansion of the payments systems business in India and the key drivers: retail payments and growing popularity of card-based transactions, large-value payments driven by rising turnover in the interbank clearing system, Negotiated Dealing System (NDS ) and foreign exchange clearing segments. Noteworthy landmarks in the evolution of payment systems highlighted in this section are the implementation of the real-time gross settlement (RTGS) system, the.