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Essay on Internet Banking

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❶Understanding the Basic Functions of World Bank 3. The most important function of the banking system of a country is to maintain the financial stability and establishing a system to ensure efficient functioning of the financial system of a country.

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In present times, most of the public sector banks have already adopted this concept and started extending these facilities to its customers gradually by including more and more of its important branches under this category. In order to make their bank account safe, one should follow certain security precautions.

Customer should never share personal information like PIN number, passwords etc. It is important that documents that contain confidential information are safeguarded. PIN or password should be changed immediately and memorized before destroying the mailers. Customers are also advised not to provide sensitive account-related information over unsecured e-mails or over the phone. He must take simple precautions like changing the ATM, PIN and online login and transaction passwords on a regular basis.

It is also important to ensure that the logged in session is properly signed out. Bill payment service is a utility service of internet banking. Accordingly, each bank has tie-ups with various utility companies, service providers, insurance companies across the country. Such tie-ups can facilitate online payment of bills of electricity, telephone, mobile phone, credit card, insurance premium bills etc.

In order to make online payment of bills, a simple one-time registration for each bills has to be made and a standing instruction has to be made to make online payment of recurring bills automatically. Most interestingly, the bank usually does not charge customers for such online bill payment.

Internet banking has made provision for transfer of any amount of fund from one account to another of the same or any other bank. Accordingly, customers can send money anywhere in India. The transfer will take place in a day or so, whereas in a traditional method it takes about three to four working days. ICICI Bank recently reported that its online bill payment and fund transfer facility have been most popular online services. Internet banking provides the facility of credit card to its customers.

With internet banking, customers can not only pay their credit card bills online but also gets a loan on their cards. Not just this, they can also apply for an additional card, request a credit line increase and in case the card is lost, one can report lost card online.

Through Internet banking facility to issue Railway pass is also available. Indian Railways has tied up with ICICI bank for this purpose and one can now make railway pass for local trains online. The pass can be delivered to the customer at his doorstep. Moreover, online booking of e-tickets of Railways, Airlines etc. Through Internet banking, opening a fixed deposit account has become easier. A customer can now open an FD account online through funds transfer.

Online banking can also be a great friend for lazy investors. Moreover, investors with interlinked de-mat account and bank account can easily trade in the stock market and the amount will be automatically debited from their respective bank accounts and the shares will be credited in their de-mat account. Besides, some banks provide its customers the facility to purchase mutual funds directly from the online banking system. Nowadays, most leading banks offer both online banking and de-mat account facilities.

After reading this essay you will learn about: Introduction to World Bank 2. Understanding the Basic Functions of World Bank 3. Project Business under World Bank Funding 4. Payments under Bank Financed Projects 5.

Post-Evaluation of the Projects by World Bank 6. World Bank Business Guidelines 7. A bank is an institution that accepts deposits of money from the public withdraw-able by cheque and used for lending. Thus, there are two essential functions which make a financial institution a bank: The former is its unique or most distinctive function. Three things about deposits are noteworthy: In fact the banks channelize the savings of the depositors to the entrepreneurs.

This is however the basic function of the banking system. With the globalisation of the trading activities during the past few decades, the banks are playing the pivotal role in smooth functioning of the entire global economic system along with the other institutions like insurance company, investment banks, financial companies, merchant banks and others.

The banking system forms the corner stone of the modern economic system and the economic health of any nation as well as that of the global economy has become so interconnected, that if there is any turmoil in the major banks of the world economy, the entire global economy faces major crisis which may sometimes lead to global financial meltdown as has been recently seen in throughout the world.

The most important function of the banking system of a country is to maintain the financial stability and establishing a system to ensure efficient functioning of the financial system of a country. The Central Bank of a country is the only institution entitled to issue currencies and control the circulation of the same. The Central Bank supervises the entire financial system of a country and implements its policy through the Commercial Banks both under the control of the government or private players.

Controlling the inflation of the country, maintaining the price stability, supporting the financial needs of the Government of the country, controlling the lending power of the Commercial Banks by changing the reserve ratios, formulating policies and implementing the same for fostering the overall financial as well as economic development of the country are all the major functions of the Central Bank of a country.

This essay has been submitted to us by a student in order to help you with your studies. This is not an example of the work written by our professional essay writers. The financial and economic policies of the Central Bankare implemented through the Commercial Banks of the country. The banks act as the most important financial intermediaries inthe economic system of a country, apart from the insurance companies and other financial intermediaries. As financial intermediaries, the banks take deposits from the firms and households in the economic system and mobilise this savings to the borrowers like the firms and the households, thereby channelizing the surplus funds from various economic agents to the agents with deficiency of funds.

Thus the banks directly affect the economic development of a nation by acting as the biggest source of the loan capital for the entrepreneurs and also for the Governments, if required. One unique feature is the credit creation facilitiesof the banks. Use of cheque without actual transaction of currencies help the banks to lend more, than its deposits permit, and thus the circulation of money as well as the amount lend for the developmental activities could considerably be increased without printing of the currency notes.

In underdeveloped countries, the banks perform a great deal activities for the development of the particularly backward sectors like agriculture. In the developing countries the banks provide a huge loan to the agricultural sector to equip it with the modern technology to increase the crop production and also to increase the cultivable lands by investing in the development of the irrigational facilities. The banks plays the most important role in the infrastructural development like construction of houses and other infrastructural facilities contributing directly to the development of the countries as well as its inhabitants.

While collecting the deposits the risk of holding money is transferred from the households to the banks and thus banks act as the custodian of money. Moreover, the money deposited in the current account or the demand deposits account could be withdrawn by the depositors at the time of need.

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ADVERTISEMENTS: A bank is an institution that accepts deposits of money from the public withdraw-able by cheque and used for lending. Thus, there are two essential functions which make a financial institution a bank: (1) Acceptance of chequable deposits (of money) from the public and ADVERTISEMENTS: (2) Lending.

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