In present-day scenario net banking of any bank whether DCB net banking or Allahabad netbanking of Axis Bank net banking has evolved tremendously and plays an important role in developing our country – India. Banks no longer are restricted to providing traditional banking. In fact, all banks and financial institutions have shifted towards virtual banking. You now are experiencing a more feasible banking operation owing to the development in information technology. 

It is because banks are accepting IT-enabled techniques and tools for banking operations that you can make the most of the digital linked quality services. In traditional banking, you were supposed to visit the bank branch for all your chores whether it is a money deposit, amount transfer, or opening a deposit account. Now with internet banking, traditional services are now less preferred. 

Net banking – a conceptual viewpoint for electronic banking

This is an automated delivery of traditional and new banking services and products directly to you via electronic, and interactive communication channels. Efficient implementation of the supporting technology for permitting several electronic banking has brought in a new revolution for the delivery of online banking facilities. With the rising popularity and advantages of e-banking, several banks have identified the importance, challenges and competition of the new technology and are steadily incorporating into the new age of banking. 

Growth of online banking or net banking in India

Until the 1990s, banks were using the traditional banking mode in their branch. Post-financial reforms, banking businesses even viewed innovative movement of banking services. In the year 1993, employees of the Indian banks association (IBA) contracted a prudent agreement with bank management regarding the inclusion of computerized applications in the banking platform. Indian banking sector accepted computerization in 1993.

This acceptance of computerization was not hardcore, it was owing to the sheer compulsion and the requirement to cope with the rising overload of the incompatible manual system and to attain further growth. However, this specific agreement acted as a breakthrough in the introduction of computerized apps and the development of banking networks for easy communication. 

Note that, the very first initiative for computerization of the banking activities was only accepted due to the landmark reports prepared by major committees headed by the former Reserve Bank of India governor then named Dr C Rangarajan. In both reports, strong recommendations were made to accept computerization in the banking operation at different levels and suggested apt architecture. By the year 1994,

The RBI (Reserve Bank of India) formed a committee headed by WS Saraf, who recommended the usage of ETF (electronic fund transfer). The introduction of ETF in the banking vertical and the extension of MICR (magnetic ink character recognition) acted as a turning point, and from here, ​there was no return to the traditional vertical. Post this, new developments in the digital space kept happening and the banks ensured to incorporate those developments for better user interaction and higher growth. 

In 1996, the Indian Industrial Credit & Investment Corporation was the very first to introduce electronic banking to all banks. Note that this initiative was adopted by most of the banks like Citibank, HDFC bank, IndusInd Bank, etc., who began providing online banking services by 1999. Since then, the Indian Government and Reserve Bank of India even have taken different steps for the expansion as well as the smooth functioning of electronic banking services in India. Indian Government passed the Income Tax Act in 2000, wherein it delivered a legal acknowledgement for e-commerce and e-transactions. Considerable technical growths witnessed in new-age payment infrastructure in India are as follows – 

In the year between 1980 and 1990 – Arrival of the credit card and debit cards​ in the banking vertical.​

In the year between 1984 and 1988 – Banks began using computers and MICR (magnetic ink character recognition) cheques were introduced. 

In the year 1987 – HSBC bank became the first bank to come up with the ATM concept in India. 

In the year 1990 – ECS payments were introduced by the Reserve Bank of India (RBI). 

In the year 1991 – India got along with the worldwide interbank telecommunication society. 

In the year 1997 – A shared payment system was set up. 

In the year 1999 – A pilot project linked with smart cards was started in joint association with the RBI (Reserve Bank of India), IDRBT (Hyderabad), and IIT (Mumbai). 

In the year 2000 – The information technology (IT) Act was passed. 

In the year 2002 – Mobile banking began in India.

In the year 2003 – Special electronic fund transfer was introduced. 

In the year 2004 – Real-time gross settlement (RTGS) was introduced. 

In the year 2005 – 11 per cent of the public sector bank branches were brought under core banking. Also, national electronic fund transfer was introduced. 

In the year 2007 – the settlement and payment system act, was passed. 

In the year 2008 – A cheque truncation system was introduced. Besides this, operative guidelines on transactions through mobile banking were issued. 

In the year 2009 – Free cash withdrawals through ATMs. 

In the year 2010 – IMPS or an immediate payment system was introduced. 

In the year 2016 – the Bharat bill system for payment and unified payment interface across the country was launched. Also, BHIM (Bharat Interface for Money), a mobile banking app was developed by the NPCI (National Payment Corporation of India). This was based on the UPI (Unified Payment Interface) system. 

Traditional banking or electronic banking – What’s your best bet?

In traditional banking, you as a customer were required to visit the bank branch to perform all your banking activities, however, with the introduction of digital banking services like net banking, mobile banking, and others, now you can conduct your banking transaction at the drop of a hat from anywhere using your mobile or laptop.

For instance, suppose, you have an account with DCB bank, and you require to make an instant transfer of Rs 1,000 to your friend. Now, to make the transfer you don’t need to visit the bank physically, you can conduct this payment instantly through the DCB netbanking platform. This digital mode of payment through net banking not just saves plenty of time but also provides high convenience in making payments.

Post-financial reforms, banking businesses even viewed innovative movement of banking services. In the year 1993, employees of the Indian banks association (IBA) contracted a prudent agreement with bank management regarding the inclusion of computerized applications in the banking platform. The adoption of agency banking software revolutionized service delivery by enhancing operational efficiency and broadening access to banking services.