Page 1 of 10

European Journal of Business &

Social Sciences

Available at https://ejbss.org/

ISSN: 2235-767X

Volume 07 Issue 01

January 2019

Available online: https://ejbss.org/ P a g e | 326

Increasing Trend of E- Banking in India and Its

Future Scope

Sikkam

designation

student M. com final year

UGC NET QUALIFIED JULY 2018

ABSTRACT

Banking sector is an essential component of Indian financial sector. Banks

provide many services to the customers. E-banking is one of the services

provided by the banks to the customers. E-banking comprises the facilities

like internet banking, mobile banking, automated teller machine etc.

With the help of e-banking, the customers need not to go to related banks

for any kind of bank related activity as most of the activities are covered

under the service of e-banking and all these activities are accomplished

online through internet. These banking activities include withdrawal of

cash, generating account statement and transferring funds etc. E-banking

has certainly made the banking so convenient that customers have become

independent of banking staff. As a result, the burden on the banking staff

has also reduced. The current paper highlights the trend of e-banking in

India.

KEYWORDS:

E-banking, Bank, Customer

Page 2 of 10

European Journal of Business &

Social Sciences

Available at https://ejbss.org/

ISSN: 2235-767X

Volume 07 Issue 01

January 2019

Available online: https://ejbss.org/ P a g e | 327

INTRODUCTION

The scope of e-banking is increasing in India year by year with the

advancement of technology. Internet banking comes under this kind of

banking. Internet banking is web-based service where an authorized

person uses the identification number and password given by the related

bank.

The authorized bank customer can login the related bank website by

using these confidential id and password. After providing this

information, the data is matched with the server data and after the

verification of authenticity of the customer; he/she is provided banking

services like money transfer, online checking of account statement etc

making the banking activities easier.

Mobile banking is also an essential part of e-banking. With the increase

in the mobile users in India in recent years, the scope of mobile banking

has grown up in an effective way as most of the bank customers prefer

mobile banking for various banking activities.

Mobile banking also provides the facility of money transfer, generation of

account statement etc. Here, the customer has to link their mobile

number with the account number. To carry out these facilities, one time

password i.e. OTP is sent on the registered mobile number of the

Page 3 of 10

European Journal of Business &

Social Sciences

Available at https://ejbss.org/

ISSN: 2235-767X

Volume 07 Issue 01

January 2019

Available online: https://ejbss.org/ P a g e | 328

customer. After verifying the one time password, the user is allowed to

perform bank related activities through the mobile or smart phone.

Now, the debit cards are provided to the bank customers. These cards

can also be used to pay the bills by swapping through the machine. The

details like debit card number and CVV are provided in order to pay the

bills online or loading the amount of money in the online wallet so that

banking services can be made easier.

Security issue is regarded as the most critical issue for e-banking as in

some cases, it is observed that the hackers track the account details of

the customers online and transfer their money in their own account.

These cases are very common in rural areas where the people have no

much awareness and the fraud people get the account details like

account number, CVV and ATM pin code etc. through phone calls by

making fake banking agents.

In India, almost all the banks provide the facility of e-banking making

the customers independent of financial organizations. Also, it is observed

that with the introduction of e-banking, the banking staff member get

more time to perform their bank related tasks eliminating the time that

they had to spend to deal with the customers before the era of e-banking

and its services.