Disadvantages Of Internet Banking

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At present , the total Internet users in the country are estimated 9 lakh. However, it is expected to grow exponentially to 90 lakh in 2003. Only about 1 % of Internet users made online banking in 1998. This increased to 16.7% in March 2000 . The growth potential is , therefore , immense. Other incentives offered by banks discourage customers from visiting physical branches , and therefore are 'hooked ' to the comfort of the armchair banking. The ease of access to their accounts from anywhere in the world using a personal computer with Internet access, is particularly fascinating for High Networth Indians and non-resident individuals who have several bank accounts.

Internet Banking:
Internet technology has changed the way design and delivery of financial services and, as a result of the banking industry has made continuous innovations - especially in the field of communications and information technology - that ultimately led to the emergence of the idea of what is known as the " online banking " .
Banking services through the Internet is a way to keep existing customers and attract others to the bank. This paper online banking is defined as " an Internet portal , through which customers can use different types of banking services ranging from bill payment to making investments " ( Pikkarainen et al. , 2004) .
Compared with the traditional approach , online banking is a simple inexpensive way to bank , changing customized information and buying and selling goods and services from anywhere at any time. Despite the many benefits of this service to the bank and its customers , remains a double-edged sword and is not used by all customers, due to the increased distance between the bank and customers can take lack of confidence and in...

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...s of online banking:
The account can be accessed from any Internet -enabled device in the world. It is faster than traditional banking. Transactions can be competed in seconds . It is a lower cost. Zero cost of stamps or envelopes, ATM charges , maintenance costs , without receiving monthly statements on paper. Online banking offers email alerts to warn customers against any unauthorized activity
The disadvantages of online banking :
• Customers are uncomfortable with web browsing can have difficulty when using online banking .
• security risks online are always present. Piracy and phishing emails are serious threats to online banking.
• Customers rely on a smoothly ISP to conduct their banking business online.
• Switching banks can more cumbersome online than in person.
• It should have basic knowledge of computer and internet know- how.
• Tendency to cyber fraud .

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