Digital service provided by banks.

Introduction-
Digital banking means the bank service are delivered over the internet by the
banks. Digital banking is more than just or a online platform as included
middleware solution. Middleware is a software that connects the operating
system and the database with the other applications.The process under the
digital banking are highly automated and web-based services. It provides the
ability to the user to access the financial data through the mobile, desktop and
Atm. It also hepled by various ways, one of them that it has helped to improve
the customer relationship with customers.

In India, the need for computerization was felt in the Indian banking sector in
the late 1980s, in order to improve the customer relations, book keeping and MIS
reporting. Initially the banks started the era of digital service with the introduction
of standalone PCS and migrate to the Local Area Network (LAN). The process of
computerization gained pace with opening of economy in 1991-1992. Several
commercial banks started moving towards the digital service to remain
competitive in the market.

Benefits of digital banking

1 Customer service:

With internet freely available everywhere, all customer needs to access his
account is a device and internet. It saves him time and expense as he no longer
has to travel to a bank to carry out transactions. He does not have to wait in long
queues in the bank. Online services make it possible to access his account
anytime and anywhere.

2 24/7 availability:

The customer is able to access his account anytime he wants and variety of
services provided by banks are available 24/7 for the customer. Transferring
money is easier, quicker and safer.

3 Time Constraint

A number of services required waiting for considerable periods. But with digital
banking it is instant, with no time constraints.
4 Lower overheads:

Digital banking had drastically reduced the operating costs of banks. This has
made it possible fo banks ti charge lower fees for service and also offer high
interest rates for deposits.

Types of digital service:

1 Mobile banking:

Mobile banking is a service provided by a bank that allows its customers to

conduct financial transactions remotely using a mobile device such as
a smartphone or tablet. Unlike the related internet banking it uses software,
usually called an app, provided by the financial institution for the purpose. Mobile
banking is usually available on a 24-hour basis. Some financial institutions have
restrictions on which accounts may be accessed through mobile banking, as well
as a limit on the amount that can be transacted. Mobile banking is dependent on
the availability of an internet or data connection to the mobile device .

Feature of mobile banking:

Balance enquiry.

Mini statement.

Cheque status.

Atm and branch locator.

2 Debit card:

A debit card is plastic payment card that can be used instead of cash when
making purchases. It is similar to a credit card, but unlike a credit card, the
money is immediately trasferred directly from the cardholder's bank account
when preforming any transaction.

3 Credit card:
A credit card facility can be used by the customer anytime he want. The
cardholders borrow funds for purchasing goods and services with a condition the
card holder must pay back the money used along with interest and charges
agreed upon. Bank offer wide range of offers and cashback on which is available
on their website.

4 Demat account:

Another service provided by bank is demat account service. Under this service a
bank act as a broker for investor or customer. For trading in Indian stock market
a demat account is necessary. This account can be opened with bank by going
to their website and filling a online form. The customer also need to submit a
copy of Aadhar card and Pan card for opening a demat account with the bank.
The bank charge commission on each trading done by the investor. The bank
charge on opening of demat account, annual maintenance fees and transaction
fees.

5 Fund transfer:

Fund transfer is one of the service used by the customer of the bank. The
following are the type of fund transfer that can used by the customer:

 NEFT (National electronic fund transfer) - Under this service, fund can
be easily transferred from one bank to another bank.

 IMPS (Immediate payment services) - It is an inter-bank fund transfer

facility which can be done through mobile banking 24/7.

 UPI (Unified payment interface) - A unified payment interface is a real-

time payment system that allows transaction to be done through any
smart phone using VPA. No bank account detail is needed for the
money transfer through UPI. Only a mobile number is necessary.

 RTGS (Real time gross settlement) - This type of payment method is

normally used by business men as minimum funds that can be
transferred is 2 lakhs and goes up to 25 lakhs.

 Card less card withdrawal - This type is service can be used by the
customer to give cash to a person who does not have a bank account.

6 USSD (Unstructured supplementary service data):

Under this type of service, *99# can be used to transfer money without
downloading the application. This service can be utilized by the customer without
the need of mobile data facility. The main aim of the services to the integrated
the people from rural area to the mainstream banking.

7 Bank pre-paid card:

A prepaid is a type of payment instrument on which the customer can load

money to purchase. This type of card usually not linked with bank account of the
customer.