Online banking is one of the emerging technologies, which is beneficial to financial institutions as well as their clients. It enables a person to carry out his transactions through the Internet, irrespective of time and place. The comfort provided by this technology is that people need not visit the banks personally. The Internet not only provides the facility to shop and communicate online, but also bank online. Making deposits, withdrawals and paying bills are now just a click away.

The popularity of personal computers followed by the advent of Internet has paved the way for online banking. In order to carry out day-to-day transactions, the banking sector has been using various computer networks. Generally, a receipt is the only evidence that the customer receives at the point of purchase.

Banks have realized that online banking is a powerful and unique selling point for attracting new customers and retaining the existing ones. Internet helps in reducing the paper-based work and teller overheads in the competitive banking environment.

Paper-based work is reduced to a great extent as bills are paid online; therefore, the conventional way of writing cheques, affixing stamps and posting the payment in the mail is eliminated. When a particular fund is transferred online, the amount is automatically credited to the payee's account and debited from the payer's account.

Professional Banker Magazine, Online Banking, Banking Sector, Financial Management, Personal Finance Program, Business Banking, Automated Teller Machine, ATM, Internet Banking, Online Banking Applications, Secure Socket Layer Connections, SSL, Money Market Deposit Accounts, MMDAs, Federal Deposit Insurance Corporation, FDIC.