Академический Документы
Профессиональный Документы
Культура Документы
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. However, if a
customer is having his de-mat account with independent share brokers,
then he needs to sign a special form, which will link his two accounts.
Advantages of EFT
· Funds can get transferred easily and conveniently without delays and paper work.
· Built-in security measures ensure safety of funds during transfer.
· Losses and frauds are minimized due to easy tracking of transactions/customers.
(c ) Additional Facilities: The credit cards besides providing credit facility, the issuer extend
some additional facilities to attract more customers. These facilities and services are presented
below
a) Incidental Expenses: The credit card holders can use their cards to pay for incidental expenses.
They have to do is to call the issuer bank and instruct it to make payment like telephone bills,
electricity bills, payment to mutual funds, public issues etc.
b) Instant cash Withdrawal: Some issuers allows their credit card holder to withdraw instant cash
up to 60 percent of his credit line from ATMs in all metros. The card holders can also draw cash
in case of medical emergencies for meeting expenses on treatment at other than their home town.
This emergency medical advance facility is available with all Indian and foreign banks.
c) 24× 7×365 Customer Service: The technology adopted by the banking sector makes
comfortable life to the customers. The revolutionary phone banking service ensures that the
banks are just a phone call away to assist the card holders around the clock. Foreign banks
provide a world class service to card holders. A credit card holder can call “Citiphone banking”
and ask for temporary credit line any time.
d) Free insurance: Some of the issuers, insures the card holder at free of cost for a particular sum.
Citibank offer a complimentary personal accident insurance. The Bank of Baroda card extends
insurance protection to card holders spouse also.
e) Buy Anything on Credit Card: The credit cards are well accepted by the public. The card can
be used for all occasions and seasons. The card is also useful for purchasing essential
commodities like groceries, fuel, auto accessories and cosmetics. The cards are useful even
passing customs duties and hospital bills. We can purchase everything, anywhere at any time
under the sum at designated locations.
f) Joint Credit card and ATM Facility: Indian banks and foreign banks have introduced a joint
card. The joint card holder can access his accounts with the bank through ATMs.
g) Hotel Discount Facility: The credit holders are entitled to get discounts at all leading hotels
and clubs. The card holders are eligible to avail the facilities as per the schemes which were
offered by the hotels, travel agencies and on air ticket. Even the consumer products are also
available in this method.
h) Fuel Facility at Petrol Pumps: The BOB, Citibank, Standard Chartered cards are accepted at
all Bharat petroleum outlets. This is very convenient foe card holders at all leading metro cities.
i) Purchase Protection: The credit card facility protects the purchases against damage or loss
due fire and theft. For compensation the card holder can claim the value of the product damaged
or lost from The New India Assurance Company. This protection is available for a limited period
from the date of purchase of the product on the credit card. Some of these facilities are exclusive
offers, airport lounges, special hospital facilities, special travel services.
Debit Card
Debit Card is the innovative instrument in the financial services sector. It is the most convenient
method of payment to the merchant establishment. It needs involvement of many banks. The
card holder will present the card on completion of his purchases at the merchant establishment
on production of a debit card. The card details are fed through a terminal at the merchant’s
establishment. The card holder is immediately debited from the card holder’s account and
transferred to the account of merchant establishment. No overdrawing is allowed in the case of
debit card. A debit card is the variant of an ATM card. It has the following features:
I. Whereas an ATM card can be used only where the ATM’s are provided by the banks, and
that too only for cash withdrawals, the debit card can be used in any merchant outlet that is
linked with the customer’s bank for making payment.
II. Credit card is issued to clients after a proper assessment of their credit standing. But for a
debit card holder there is no need to make such an assessment.
III. At the time of making payment through a debit card, the amount is instantly debited to the
customer’s account unlike payment made through the credit card where the account of the
customer is debited after a certain period.
IV. Debit card freeze the cardholder from carrying cash for his/her purchases.
V. Debit card is like a blank cheque, so it must be used carefully otherwise an unscrupulous
person can wipe the entire balance in the bank account of the holder.
VI. There are no chances of the debit card user to fall into the debt trap, since payment is
immediately debited to his account, as he can only use the money which is available in his
account.
VII. There are no transaction costs and no question of late fee payment in the use of debit card.
VIII. Bankers also avoid the risk of bad debts.
2. Low cost banking service: E-banking helps in reducing the operational costs of banking
services. Better quality services can be ensured at low cost.
3. Higher interest rate: Lower operating cost results in higher interest rates on savings and
lower rates on mortgages and loans offers from the banks. Some banks offer high yield
certificate of deposits and don’t penalize withdrawals on certificate of deposits, opening of
accounts without minimum deposits and no minimum balance.
4. Transfer services: Online banking allows automatic funding of accounts from long
established bank accounts via electronic funds transfers.
5. Ease of monitoring: A client can monitor his/her spending via a virtual wallet through certain
banks and applications and enable payments.
6. Ease of transaction: The speed of transaction is faster relative to use of ATM’s or customary
banking.
7. Discounts: The credit cards and debit cards enables the Customers to obtain discounts from
retail outlets.
8. Quality service: E-Banking helps the bank to provide efficient, economic and quality service
to the customers. It helps the bank to create new customer and retaining the old ones
successfully.
9. Any time cash facility: The customer can obtain funds at any time from ATM machines.
2. Security Concerns: One of the biggest disadvantages of doing e-banking is the question of
security. People worry that their bank accounts can be hacked and accessed without their
knowledge or that the funds they transfer may not reach the intended recipients.
4. Transaction problems: Face to face meeting is better in handling complex transactions and
problems. Banks may call for meetings and seek expert advice to solve issues.
5. Lack of personal contact between customer and banker: Customary banking allows
creation of a personal touch between a bank and its clients. A personal touch with a bank
manager can enable the manager to change terms in our account since he/she has some discretion
in case of any personal circumstantial change. It can include reversal of an undeserved service
charge.