By Kamiya Jani, Moneycontrol.com
Date of publishing: 2006-11-16 17:11:41
Penalty due to non-payment of
bill is not new to anyone of us. And quite obviously, who likes the
long procedure of writing a cheque, standing in a long queue and then
ensuring that the particular amount is available in your bank account?
Similarly, Mr Sharma, who is on business tour for at least 25 days a
month, finds it difficult to clear his dues on time because of his busy
schedule.
He, like many of us, was
possibly not aware of the online services, banks are offering these
days. With just a click, all his dues would have been cleared long
back. However, it's never too late to mend.
Indian
banks are trying to make your life easier. Not just bill payment, you
can make investments, shop or buy tickets and plan a holiday at your
fingertips. In fact, sources from ICICI Bank tell us, "Our Internet
banking base has been growing at an exponential pace over the last few
years. Currently around 78 per cent of the bank's customer base is
registered for Internet banking."
To get
started, all you need is a computer with a modem or other dial-up
device, a checking account with a bank that offers online service and
the patience to complete about a one-page application--which can
usually be done online. You can avail the following services.
Bill payment service
Each
bank has tie-ups with various utility companies, service providers and
insurance companies, across the country. You can facilitate payment of
electricity and telephone bills, mobile phone, credit card and
insurance premium bills.
To pay your
bills, all you need to do is complete a simple one-time registration
for each biller. You can also set up standing instructions online to
pay your recurring bills, automatically. One-time standing instruction
will ensure that you don't miss out on your bill payments due to lack
of time. Most interestingly, the bank does not charge customers for
online bill payment.
Fund transfer
You
can transfer any amount from one account to another of the same or any
another bank. Customers can send money anywhere in India. Once you
login to your account, you need to mention the payees's account number,
his bank and the branch. The transfer will take place in a day or so,
whereas in a traditional method, it takes about three working days.
ICICI Bank says that online bill payment service and fund transfer
facility have been their most popular online services.
Credit card customers
Credit
card users have a lot in store. With Internet banking, customers can
not only pay their credit card bills online but also get a loan on
their cards. Not just this, they can also apply for an additional card,
request a credit line increase and God forbid if you lose your credit
card, you can report lost card online.
Railway pass
This is something that would interest all the aam janta.
Indian Railways has tied up with ICICI bank and you can now make your
railway pass for local trains online. The pass will be delivered to you
at your doorstep. But the facility is limited to Mumbai, Thane, Nashik,
Surat and Pune. The bank would just charge Rs 10 + 12.24 per cent of
service tax.
Investing through Internet banking
Opening
a fixed deposit account cannot get easier than this. You can now open
an FD online through funds transfer. Online banking can also be a great
friend for lazy investors.
Now investors
with interlinked demat 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 demat
account.
Moreover, some banks even give you the facility to purchase mutual funds directly from the online banking system.
So
you need not worry about filling those big forms for mutual funds, they
will now be just a few clicks away. Nowadays, most leading banks offer
both online banking and demat account. However if you have your demat
account with independent share brokers, then you need to sign a special
form, which will link your two accounts.
Recharging your prepaid phone
Now
you no longer need to rush to the vendor to recharge your prepaid
phone, every time your talk time runs out. Just top-up your prepaid
mobile cards by logging in to Internet banking. By just selecting your
operator's name, entering your mobile number and the amount for
recharge, your phone is again back in action within few minutes.
Shopping at your fingertips
Leading
banks have tie ups with various shopping websites. With a range of all
kind of products, you can shop online and the payment is also made
conveniently through your account. You can also buy railway and air
tickets through Internet banking.
Internet banking versus traditional method
Inspite
of so many facilities that Internet banking offers us, we still seem to
trust our traditional method of banking and is reluctant to use online
banking. But here are few cases where Internet banking will turn out to
be a better option in terms of saving your money.
'Stop
payment' done through Internet banking will not cost any extra fees but
when done through the branch, the bank may charge you Rs 50 per cheque
plus the service tax.
Through Internet banking, you can check your transactions at any time of the day, and as many times as you want to.
On
the other hand, in a traditional method, you get quarterly statements
from the bank and if you request for a statement at your required time,
it may turn out to be an expensive affair. The branch may charge you Rs
25 per page, which includes only 30 transactions. Moreover, the bank
branch would take eight days to deliver it at your doorstep.
If
the fund transfer has to be made outstation, where the bank does not
have a branch, the bank would demand outstation charges. Whereas with
the help of online banking, it will be absolutely free for you.
As
per the Internet and Mobile Association of India's report on online
banking 2006, "There are many advantages of online banking. It is
convenient, it isn't bound by operational timings, there are no
geographical barriers and the services can be offered at a miniscule
cost."
Security Precautions
Customers
should never share personal information like PIN numbers, passwords etc
with anyone, including employees of the bank. It is important that
documents that contain confidential information are safeguarded. PIN or
password mailers should not be stored, the PIN and/or passwords should
be changed immediately and memorised before destroying the mailers.
Customers
are advised not to provide sensitive account-related information over
unsecured e-mails or over the phone. Take simple precautions like
changing the ATM PIN and online login and transaction passwords on a
regular basis. Also ensure that the logged in session is properly
signed out.
Link to this article: Moneycontrol.com, Rediff.com