The Hindu Business Line : How to bank through the Net

ALOK reaches his office at 9 a.m. He has a meeting at 9.30. But before that, he has to send money to his father, pay his credit card and telephone bills and also update himself on what stocks his wife has bought. Can he do all this in half-an-hour ? Indeed he can and here is how.

He logs on to his computer. Gets into the Web site of his bank. Logs in to the online-banking portal entering his user ID and password. He transfers funds from his account to his father's in the same bank in Bangalore. He then selects the bill payment module, checks the details and pays his bills at the click of a button . Then he opens his demat account to check the status . Once again he goes back to the fund transfer screen and writes an e-cheque to his broker. Alok has done all this in just 15 minutes.

Of course, the time taken depends on the quality of the Internet connectivity.

No queues, no holidays transact anytime, anywhere that is net banking for you. If you are not convinced and have a million questions, just read on. We have put together answers to some queries that might help you understand the facility.

What transactions can you do through the Net?

You can:

Check your account status.

Transfer funds between your accounts in the same bank.

Transfer funds to a third party in the same bank.

Order for a demand draft.

Pay your electricity bills, telephone bills or insurance premium.

Carry on demat transactions.

Pay your credit card bills.

How to get started?

All you have to do is fill an online form and send it to the bank. But, remember, you should have a savings or a current account with the bank to take the Net banking facility. You will get a unique password and user ID that permits you to transact or access your account details in couple of day's time. ICICI gives you a separate ID and password for login and for transactions. This is to enhance security. Citibank asks you for your Citibank credit card number to permit access.

What you cannot do through Net banking

You cannot transfer funds from your bank to another bank. Only ICICI Bank permits inter-bank transfer of funds.

In fact, it allows such transfers even if the receiving bank does not have a Net banking facility.

You can pay the credit card bills of only the bank whose Net banking facility you are using.

For instance, you cannot pay a HDFC credit card bill through a Citibank Net facility.

You cannot make payments to utilities after the due date. Citibank, however, accepts some depending on the arrangement with the utility.

A demand draft can be sent only to places where the bank has a branch or has an arrangement with another bank in the city or town.

How secure is the system?

Your concern about security is understandable as it is your hard-earned money that is at stake. You do hear a lot nowadays about Internet "scams".

All banks have installed the highest safety system commercially available. The data that travel through the Net are scrambled before they reach the server. So a person may have to try a zillion combinations before he can get at your password. Banks generally take the following precautions to prevent misuse:

Your PIN number is randomly generated and even the bank employees do not know it.

The system locks itself if a wrong password has been tried for more than certain number of attempts — say, three times. You have to contact the bank to release your password.

If you have not used your online banking facility for a certain period say 180 days, your ID will be disabled, and you have to apply for a fresh ID.

What not to do?

The banks do take enough precautions to prevent any misuse. But largely it depends on how cautious you are. You do need to remember your password(s) and login ID(s), especially when you have a number of them . Else you are in trouble. Some security protocols you may need to follow are:

Change your password after you get your initial password from the bank.

Change your password frequently. Be very careful with your password and do not reveal it to anyone or let anybody guess it.

Do not leave the computer online unattended . This gives room for someone to tinker with it.

If you are transacting from a shared computer, change your password immediately after use.

Always log out once you are through. Do not shut down the machine without logging out. There is a chance of somebody looking at your transactions otherwise.

How do I know my transaction is complete?

Once you have completed the transaction a unique number is displayed on the screen. This confirms that the transaction has taken effect. You can use this number for future queries about that transaction. If you are still not sure check your balances to see if it has taken effect.

What happens if I lose connectivity or if there is a power cut?

If there is a power cut before you have received the online confirmation and the unique transaction number, the transaction is aborted. All you have to do is log on and see your transaction details online. If you are still unsure, call your bank and check.

What do I pay for the service?

Well, at present, most facilities are free. However, banks do charge for certain facilities. For instance, Citibank charges Rs 10 per transaction for utility bill payments for Suvidha account holders. The same is free for its normal savings account holders. HDFC charges Rs 30 per draft for a demand draft, whereas Citibank provides the service free. Net banking is not only convenient but also cost effective. Services that are otherwise charged such as getting a monthly bank account statement are free if you transact through the Net (you will, of course, incur telephone and Internet charges for the time spent on the Net). You, however, have to maintain a certain minimum balance if you wish to use Net banking, depending on the account specifications and who you bank with.

Is there a transaction limit?

Yes, there is a limit on the transaction size that can be carried out through the Net. For instance, in the case of ICICI, the maximum amount that can be transferred in a single transaction is Rs 1 lakh for intra-bank transfers and Rs 5 lakh for inter-bank transfers.

If you need more details log on to www.icicibank.com and go through the net banking demo. Other banks also have a demo which you can check out. Enjoy banking through the Net and save time.

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