INTRODUCTION

The IT industry
is playing a pivotal role in the banking sector; it has become a helping hand
to them in catering the needs of its customers. Even though online banking has
existed since 1980s, it gained its popularity mainly during crisis created by
various external factors such as political, economic, etc. In the recent times
the boom in banking sector was due a political factor, it has created craving
for more development in the banking sector. The outcome of that is the
substantial growth in E payments. Banks rely on
gathering, processing, analyzing, and providing information to meet the needs
of customers. The importance of information in banking is not surprisingly any
new, banks were among the oldest adopters of automated information processing
technology. The visible benefits of IT in the banking sector in India are quite
well known. There is ‘Anywhere Banking’ via Core Banking Systems, ‘Anytime
Banking’ via new, 24/7 on 365 days accessible delivery channels such as
Automated Teller Machines (ATMs), and Net and Mobile Banking. In addition, IT
has enabled efficient, accurate and timely management of the increased
transaction volume that comes with a larger customer base. It has also guided
the movement from class banking to mass banking.

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Demonetization
and its influence on e-portals

The government’s
demonetization exercise announced on November 8 has given a huge push to
digital payments in the country. Multiple factors and parallel
institutional and behavioral trends seem to be powering India’s transition
towards a less-cash economy. The rapid penetration of smartphones and spread of
internet connectivity on mobiles, digital payment services
provided by non-banking
institutions and the rise of the fintech
sector, consumer expectations of one-touch payments, and progress in
regulatory governance and tax breaks, have altogether shaped India’s
payments landscape in favor of digital solutions. 

Objectives of the study

1.     
To know the benefits
of E Banking.

2.    
A comparative study
between famous e portal Paytm and BHIM.

Research Methodology

To understand the benefits of E Banking Various Secondary Sources
like internet; various websites, e newspapers, and blogs were referred.

To analyze and compare the E Portals Primary Data was collected
through a questionnaire method. (Shall I paste my
questionnaire here?)

Limitations

1.     
Convenient
sampling method was used to collect data.

2.    
The respondents
were restricted to the area of Secunderabad.

3.    
Size of the
sample does not have to reflect the population opinion.

 

E Portals

The emergence of technology in this most
dynamic industry has helped in increasing the speed and efficiency of banking
operations by facilitating the emergence of innovative products and new
delivery channels Wider usage of
mobiles and internet is playing a major role in blurring the physical
boundaries, and unlocking a whole new world of opportunities for banks by
tapping newer customer segments and in recording greater volume of transactions

Digital payments
refer to electronic transactions, which include payments made for the goods and
the services that are bought over the internet, mobile payments at
point-of-sale (PoS) through a smartphone applications (apps), and from peer-to-peer
transfers.

Online or mobile
wallets

Online
wallets are used via the internet and through smartphone applications.
Money can be
stored on the app via recharge by debit or credit cards or net banking.
Consumer
wallet limit is Rs 20,000 per month or Rs 100,000 per month after KYC. The merchant wallet limit is Rs
50,000 per month after self-declaration, and Rs 100,000 after KYC
verification.
Facilitates
P2P fund transfers.

 

Prepaid credit cards

Pre-loaded
to individual’s bank account. It is like a gift card; customers can make
purchases using funds available on the card – and not on borrowed credit
from the bank.
Can be
recharged like a mobile phone recharge, up to a prescribed limit.

Debit/RuPay cards

These are
linked to an individual’s bank account.
Can be used
at shops, ATMs, online wallets, micro-ATMs, and for e-commerce purchases.
Debit cards
have overtaken credit cards in India. In December 2015, there were more
than 630 million debit cards as compared to 22.75 million credit cards.

AEPS

The Aadhar Enabled Payments uses the 12-digit unique Aadhaar identification
number to allow
bank-to-bank transactions at PoS.
AEPS
services include balance enquiry, cash withdrawal, cash deposit, and
Aadhaar to Aadhaar fund transfers.

USSD

Stands for
Unstructured Supplementary Service Data based mobile banking.
Linked to
merchant’s bank account and used via mobile phone on GSM network for
payments up to US$77.68 (Rs 5,000) per day per customer.

UPI

The United
Payments Interface (UPI) manages to be a system that powers multiple bank
accounts onto a single mobile application platform (of any participating
bank).
Clubs multiple
banking features, ensures seamless fund routing, and merchant payments.
Facilitates
P2P fund transfers.

 

The new apps aim to ease the
transfer of funds across India, especially in rural communities, and more
importantly, seek to facilitate a behavioral change towards the greater
adoption of cashless services. As such, the digital payments industry is fast
becoming a highly attractive destination for foreign investors keen to
establish a foothold in India.