E-Banking

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  • Q1

    The latest virtual banking is called

    Marks:1
    Answer:

    e-banking.

    Explanation:
    E-banking is defined as the automated delivery of new and traditional banking products and services directly to customers through electronic, interactive communication channels. E-banking includes the systems that enable financial institution, customers, individuals or businesses, to access accounts, transact business, or obtain information on financial products and services through a public or private network, including the Internet.
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  • Q2

    Rohan bought shoes at a Bata shop. He did not pay in cash. Instead, he paid electronically such that the terminal located at the shop automatically debited Rohan's bank balance & transferred it to Bata. This mode of payment is

    Marks:1
    Answer:

    PoS.

    Explanation:

    PoS terminal is located at a shop & if connected electronically to the bank. When a customer presents his debit card, the terminal automatically transfers the required amount from the customer's account to the seller's account.

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  • Q3

    E-banking offers following services, except

    Marks:1
    Answer:

    Pan Card

    Explanation:

    E-banking is a service provided by many banks, that allows customers to conduct banking transactions, such as managing savings, checking accounts, applying for loans etc.

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  • Q4

    Explain any 4 services offered by e-banking.

    Marks:4
    Answer:

    Services offered by e-banking are:

    Electronic Funds Transfer System (EFTS) – This refers to a system by which a bank transfers wages and salaries directly from the company’s account to the accounts of its employees.

    Automated Teller Machine (ATM) This refers to a self service terminal offering 24 x 7 service of withdrawal of cash up to a specified limit, by using a plastic card & an identification code.

    Credit Card – This refers to a plastic card issued by a bank to its customers, offering the holder an option to use the card to purchase goods or services on credit (upto the limit specified by the bank)

    Point of Sales – This is a point of sale terminal located at a store, connected electronically to a bank computer. When a customer’s debit card is used on the terminal, it automatically transfers money from the customer’s account to the merchant’s account.

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  • Q5

    Explain the benefits of e-banking.

    Marks:4
    Answer:

    Benefits of e-banking from bank’s point of view:

    i. It proves to be a competitive advantage to the bank

    ii. It provides unlimited network to the bank, which is not just limited to its branches

    iii. It reduces load on branches as it takes over some of the accounting functions & establishes centralised database

    iv. It lowers transaction costs

    Benefits of e-banking from from customer’s point of view:

    i. It provides 24 x 7 services

    ii. Transactions can be made by customers from home or office or while travelling through mobile telephone.

    iii. By offering unlimited access & greater security, banks gain higher customer satisfaction.

    iv. It inculcates financial discipline in customers

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