Online Banking

 What is the meaning of Online Banking?

Online Banking means you can access your account via the internet on your mobile, laptop, or tablet. You can perform your financial transaction through online banking. Such as transferring funds from one account to another account, paying bills of any type such as electricity or online shopping bill, and much more facilities.

Banking Features

Here we will discuss some features of banking as well as online banking.

What is banking use?

Banking is a financial institute where we perform our financial transactions. We deposit our funds into a bank and then use for our needs such as transferring funds from one account to another account for business purposes or personal use. The basic definition of a bank is to take deposits and make loans. Earn profit from deposit and loaning.

Banking Products and Services

Savings Accounts

A major feature of these types of accounts is profit. Customer deposits their extra or saving funds into the bank and earns profit as their demand. Profit may be monthly, quarterly, semiannually, or yearly basis.

Fix or Term Deposit

Fix deposit means customer fix their deposit for some duration such as a week, month, quarter, six months, or years and earn extra profits. The profit rate of fixed deposits is high as compared to saving deposits.

Current accounts

Current accounts mean customers deposit funds and use them as their need. Customer funds remain as the deposits neither increased nor decreased. Except banking charges deducted from the account.

Different types of accounts

As customers need changing new accounts are introduced by the banking industry.

Business accounts

Where the customer performs their daily basis business transaction which defines their profile.

Salary account

Customer can transfer their salary from their institute and withdrawal. This account is prohibited the customer cannot perform business transactions into this account.

Trust, Clubs, or Society accounts

Use for specific purposes. These types of accounts use for generating funds and donations. These funds are used for the welfare of societies.

Loans

Are a major feature of the banking industry. Major earnings of banking is from their loan profits. Loans are different types such as agriculture loans, SME loans, and salary loans.

Consumer loans

Mean auto finance. Banks provide facilities to customers to purchase cars or bikes on behalf of banks and use them and pay rent or principle plus a markup. All automobile products include in consumer banking. Products are personal use cars, business use vehicles such as Raksha, carry daba, van, bus, tractors, bikes, and mobiles.   

Cheque book

Is used for the purpose of withdrawing funds from the bank. The cheque requirement is to present to the bank physically. There are two types of cheques.

Open Cheque

Customers can withdraw funds to present this cheque on the counter.

Crossed cheques

Cannot be present on the counter for the purpose of withdrawing funds. Crossed cheque only transfers from one account to another account.

Clearing

This is a facility for customers who received cross cheques from another bank in which they have no account. This is also the facility for customers who received different bank cheques but he has no time to visit the banks or banks not available in the city. Banks received cheques and lodge them in the clearing. Clearing deal NIFT (National institutional facilitation technology). NIFT takes funds on behalf of the bank from a different bank and sends the bank to the initiator.   

ATM Cards

Use ATM machines for financial transactions. This is an ADC (Alter delivery channel) facility that we can use outside of the bank. This can be used for shopping, fuel filling station, ATM machines, etc.

Net banking

Is a very charming and attractive service for customers who do have not time to visit banks and perform their financial transactions. This is also a basic need of all freelancers who work online. Net banking used to transfer funds from one account to another account. Customers can pay bills or do online shopping. This is also used in business. Some banks provide this facility free of cost but some banks have some charges.   

Mobile Applications

Are also the same types of net banking only difference is that you can install an application on your mobile. This is easy for reaching into your location for financial transactions. In net banking you need to go to the site for net banking and further click net banking. The application saves the customer time.

SMS banking

Is the same as net banking only difference is to do the financial transaction via SMS through mobile. This can use customers who have any type of mobile such as a keypad or android.

Pay Order

Is an instrument that the bank issues as a guaranty. Banks take a deposit from a customer and shift it into a designated account and issue an instrument. This is used where sometimes customers cannot pay the amount until they received the product. One feature of Pay Order is that customer who has no account in different banks but wants to transfer funds from one account to another account. This is also used for property purposes. Because he should not take enough money himself at the time of registering his land or presenting the court for registry purposes.  

RTGS

This means real-time gross settlement. This facility was introduced by the banking industry to cover clearing time. Because clearing takes one or two days for fund transfer from one bank account to another bank account. RTGS transfers funds in real-time from one bank to another bank. This facility reduced customer complaints as well as time.

Home remittance

Is an attractive facility or service who living abroad or their family lives abroad? In this service, customers can send money from one country to another country. Home remittance received in the accounts as well as non-accounts. The non-account means the customer received a PIN from the sender and present their PIN and CNIC into the bank and take the fund as the sender sent.

What is the bank's role?

Banks performs a major role in developing any country. Almost every person needs banking in his daily life. Banking is the backbone of any country. Banking cannot be discussed on one page or post. If anyone has any query regarding any part or topic he may visit google and search and find his need or question.