The Hindu Business Line : Corporates log on to Net banking

Internet banking for individuals has been around for years; free of cost, and not only to high net worth individuals. Tens of thousands of people across the country routinely log on to the Net one or more times a day to check out balances available in their accounts and credit cards, pay utility bills online, settle credit card dues, transfer money between accounts and remit funds to third parties having accounts with other banks.

Most banks such as SBI and others offer Internet banking for corporates too.

Corporates can empower officers identified by them to operate online one or more of their accounts at one or more networked branches of the bank. This is how it works.

Regulator

The company appoints a `regulator' or `super-boss' for corporate Internet banking. The powers of this regulator are defined and restricted by a mandate given by a company to the SBI branch at which it has its main account.

The corporate Net banking facility automatically debars officers from exceeding the limits allotted to them, while instantaneously reporting any such attempt to the regulator or such other officer as may be specified by him, so that he/they is/are kept in the loop and can pass whatever orders he/they deem(s) necessary.

Empowering officers

Depending on his judgment, the regulator can empower specified officers to make payments for miscellaneous, unspecified purposes up to a given amount (medical and travelling bills, for instance), at one go or over a period of time, while stipulating that all such payments are brought to the notice of such and such officer of the company by the SBI, instantaneously or at periodic intervals

Restrictions

Powers of various officers to make payments can be restricted by the regulator so as to allow payments only to specified people/companies, that too up to predetermined limits, either for individual transactions or for the sum of transactions put through over any particular period. The system provides for single debit-multiple credit transactions like salary payments, and has provisions for paying taxes, utility bills etc online. `Hard copies' certifying that such and such payments have been made are sent to the company for its records.

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