Learning Objectives:

  • Define internet banking and trace its historical development.

  • Identify the products and features of internet banking.

  • Differentiate between individual and corporate internet banking.

6.1 What is Internet Banking?

Internet banking, also known as online banking, is an electronic banking system that enables individuals to conduct a wide range of financial transactions through the financial institution’s website . The Amrita Vishwa Vidyapeetham syllabus defines internet banking as a core digital banking product, covering its meaning, services, benefits, and disadvantages . Unlike mobile banking, which is primarily accessed through smartphone applications, internet banking is typically accessed via a web browser on a personal computer.

6.2 Historical Evolution of Internet Banking

The development of internet banking can be traced through several stages:

  • The 1990s: Internet banking emerged with the widespread adoption of personal computers and the internet, enabling customers to access banking services through bank websites .

  • The 2000s: Internet banking evolved to include more comprehensive services, such as account management, fund transfers, and bill payments.

  • The 2010s–Present: Internet banking has become a standard channel, often integrated with mobile banking to provide a seamless omnichannel experience.

6.3 Products and Features of Internet Banking

Internet banking platforms offer a full range of banking services. The Annamalai University syllabus covers “Product Features – Corporate and Individual Internet Banking Integration with e-Commerce Merchant sites” as a core topic . Key features include:

  • Account Management: Comprehensive account management, including statements, reporting, and document storage.

  • Fund Transfers: Domestic and international wire transfers, including NEFT, RTGS, and IMPS .

  • Bill Payments: Electronic bill payment and presentment (EBPP).

  • Investment Management: Access to investment accounts and trading platforms.

  • Corporate Banking Services: Cash management, trade finance, and payroll services .

  • Integration with e-Commerce: Payment processing and merchant services for e-commerce sites .

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