1. ELECTRONIC BANKING

2. POPULAR ELECTRONIC DELIVERY CHANNELS
ATMs
SMART CARD
TELE BANKING
INTERNET BANKING

3. ATM It is a novel cash dispenser
They are user friendly and have mass acceptability
I reaches out to large customer base at low cost
Now banks have started to outsource and share ATMs to reduce cost
ATM also dispenses railway tickets, movie tickets etc.
It is now used also as a marketing tool to target the masses
ATMs with finger print scanning technology may become operative in future making it more convenient and cost effective

4. SMART CARDS It’s a chip based card which will store a monetary value
It is more secure than a ATM, Debit & Credit Cards
It recognises signature & voices
Doesn't necessitate the use of PIN
When transaction is made using the card, the value is debited and the balance automatically comes down

5. FACETS OF E-BANKING Customer- to- Bank E-Banking
Bank- to- Bank E-Banking
Electronic Central Banking
Intranet Procurement

6. E-Banking Transactions
Account Enquiry
Fund Transfer
Payment of Electricity, Water, Telephone Bills
Online payment for transactions actually performed through Internet
Request for issuance of cheque book, draft etc.
Statement of Accounts
Access to latest schemes
Access to rates of interest & other service charges

7. TRUNCATED CHEQUE
“A cheque which is truncated during the course of a clearing cycle, either by the clearing House or by the bank, whether paying or receiving payment immediately on generation of an electronic image for transaction, substituting the further physical movement of the cheque in writing.”

8. Essential Features It is electronic image of a physical paper cheque
It is only the clearing house or the banks involved
Any holder or drawer cannot truncate a cheque
It substitutes the physical cheque from the time of truncation
Used only for the purpose of clearing
Physical cheque after truncation is retained in the custody of the Clearing House/ Bank
The addition of digital signature of Truncating Bank or Clearing House is optional

9. Electronic Cheque It is electronic image of a paper cheque
It is generated, written and signed in a secured manner using digital signature which has been legally recognised.
Digital signature is compulsory
There should be minimum safety standards like asymmetric crypto system

10. MChq Product In countries like Japan & other Asian Countries
Working: all vital personal information is stored in a magnetic strip & then loaded on to the sim card in a secured format
Existing sim card has to be replaced with 128 bit encryphon key which offers a higher degree of safety than the existing sim card.
While shopping one only gives phone no. to merchant, who would then send on a special mobile phone an sms to the server of the mobile service provider.
The customer will get inturn an sms asking him to confirm payment
The customer will have to enter his persoanlised PIN number as an added security measure and send back an sms confirming the amount to be paid .
The merchant and the customer will then get an sms confirming the completion of transaction.
The exchange normally happens within a minute

11. MChq - Advantages No need to log on to the Net
No need to log on to enter any personal information
No need to log on to have a point-of-sale terminal as in case of credit cards
Facilitates small purchases as low as Rs.50 which are not normally suitable with Credit cards
A mobile will serve dual purpose for communication and MChq
ICICI Bank has offered in collaboration with Airtel on a pilot basis only in Delhi, Mumbai, and the National Capital Region- transaction limit Rs.5000 or 10 No.s whichever exhausted first

12. Models of E-Banking Complete Centralised Solution Cluster Approach
High tech Bank within Bank

13. Advantages of E-Banking
Round the Clock Banking-Time
Convenient Banking-Place
Low Service Cost in Banking
Profitable Banking – increases customer satisfaction
Low Establishment Cost in Banking
Improved Quality banking
Speed Banking
Service Banking

14. Constraints in E-Banking
Start-up cost
Sophisticated Instruments Cost
Cost of Maintenance of all equipments
Training & Maintenance
Lack of Skilled Personnel
Security
Legal Issues
Restricted Clientele & Technical Problems
Restricted business – not all transactions
Destruction of Pricing Mechanisms- advantage to New players

15. REAL-TIME GROSS SETTLEMENT (RTGS)
Under RTGS when a payment message is moved through the clearing house online, the paying bank’s account with the RBI is simultaneously debited and credited in the receiving bank’s account.
Advantages:
Certainty of Payment
Faster Collection of funds
No settlement risk
Improved liquidity management
Less Fraud & less processing cost
Better inventory Management & Supply Chain Management