Online banking, also known as net banking or web banking, allows individuals to perform traditional banking activities through the internet instead of visiting a physical branch. Through these online platforms, users can open bank accounts, apply for debit cards, send money to others, and download bank statements to see their transaction history.
Benefits and Digital Transactions
The primary benefits of online banking include conveniently checking activity on a phone or computer, quicker loan processing, and easier money transfers. These actions are part of digital transactions, which are financial exchanges done electronically without the use of physical cash. The Indian Government’s Digital India programme encourages these "Faceless, Paperless, Cashless" transactions to transform the country into a digitally empowered society.
Common methods for performing digital transactions include:
- Credit and Debit Cards
- Net Banking (accessed via a web browser)
- Mobile Banking (accessed via a specific bank app on a smartphone)
- Digital Wallets and UPI Payments
Mobile Banking and Digital Wallets
While net banking is done through a web browser, mobile banking requires downloading a specific app from the Google Play Store or App Store. Users must set up an MPIN, which is a secret password used every time they log into the mobile app.
Digital wallets (like Google Pay, Paytm, and BHIM UPI) are apps that securely store your payment information, such as your debit or bank details, so you do not need to carry physical cards. You can transfer money using these apps in two main ways:
- Phone Number: Entering the mobile number of the receiver (if they also use a digital wallet).
- QR Code: Scanning a unique, square black-and-white code displayed by a person or a shop.
Safe Banking Practices
To protect your money during digital transactions, the sources emphasize several safety best practices:
- Never share your password, MPIN, or OTP (One Time Password) with anyone, as your bank will never ask for these details.
- Set strong passwords and change them every 6 to 12 months.
- Avoid using public Wi-Fi or open networks for online banking.
- Always sign out or log out of the website or app immediately after finishing your tasks.
- Disable your digital wallet remotely if your mobile device is ever stolen.