Anindita S pays her utility bills on time, and does many transactions with her bank. But she can't remember when she last stepped into her bank's branch or stood in a queue to pay a bill.
She is among the hundreds of thousands of Indians who do all their banking via the Internet or through the neighbourhood ATM.
Rita Sosa is not particularly comfortable with online banking. In addition, her bank does not have a large network of ATMs. Though she can access her account through the ATMs of the other banks her bank has tied up with, she is not particularly keen on paying the service charge on such transactions. So Rita plays it by ear; she uses phone banking.
Welcome to world of phone, Internet and ATM banking. You can actually 'bank' without going to the bank.
Here's a quick look at what you can do with your bank account through the Internet, over the phone or at an ATM. All it entails is opening a savings account with a bank.
Internet banking
Most private sector and many public sector banks offer an Internet banking facility along with your savings account. All you need to do is fill up an application form. Once you are given your Net banking password, you are ready to bank from your home or office.
Here's what you can do with an online account:
Manage your accounts
To begin with, the simple stuff. You can check the balance in your account, get account statements, request for a cheque book or demand draft and stop payment on cheques issued.
Some banks also offer the option of managing multiple accounts in different banks through a single online interface. For example, HDFC Bank customers can manage accounts with Citibank, ICICI Bank, HSBC India, Standard Chartered Bank and Global Trust Bank.
Transfer money
Online banking allows you to transfer funds to other accounts with the same bank or with another bank. Not all banks allow you to transfer money to accounts in other banks though; some banks require additional paperwork to activate third-party transfers.
ICICI Bank offers a money order facility that enables you to send funds to any destination in India. Recipients don't even need to have an ICICI Bank account, and the money is delivered to their doorstep.
Pay bills and shop
You can use your bank account to pay your utility bills (electricity, gas, telephone, cell phone) and credit card bills. If you want to shop online or buy railway or airline tickets you can use your online account's direct debit facility to pay for these products and services.
Most large banks have tie-ups with online retailers and shopping portals.
State Bank of India customers can use their online account to pay insurance premiums, remit subscriptions to PPF accounts and donate to charities.
Some banks allow you to do everything from refill your prepaid cards to subscribe to magazines.
Trading and investments
Want to trade in shares? Most banks these days offer a savings, online trading and demat account (shares are electronically held in what is called demat accounts) rolled into one. This means you can transfer money from your bank account to your trading account to fund purchases of shares. The shares you buy are automatically credited to your demat account.
Of course, you don't need a three-in-one account to trade in shares. Many online brokers have tied up with leading banks, letting you transfer funds between your online banking account and your trading account with the broker.
You can even buy or sell mutual fund units through your online banking account.
Is your money lying idle in your savings bank account? You can apply online for a fixed deposit or a recurring deposit.
You can ask for email updates on your transactions.
Phone banking
Don't want to log into your computer to find out your account details? No problem, just pick up the phone and ask.
Many banks offer the phone banking facility with their accounts. To access the phonebanking service, your bank will give you a customer ID number and telephone identity (TPIN or TIN) number.
You can check your bank balance, request for a mini statement to be read, check the last three transactions or request for an account statement.
Where cheques are concerned, you can enquire about the status of a cheque, order a cheque book and stop cheque payments.
Other facilities include obtaining details about the loan you've taken, pay bills, transfer funds between accounts, get the latest interest/ exchange rates, open a fixed deposit and report the loss of an ATM/ debit/ credit card.
Some banks let you withdraw cash, which is then hand-delivered to your home for a fee. ICICI Homebanking is a case in point.
Some even pick up cheques or cash for deposit.
Phonebanking is a boon for those who are not comfortable using the Internet or don't have regular access to a computer with an internet connection.
"My bank, ABN AMRO, doesn't have too many ATM outlets. They have tied up with other banks, but they charge me extra for the service," says Rita Sosa. "I order everything over the phone. Also, my bank has to deliver whatever I ask for in a stipulated time, so everything reaches me in a couple of hours. In the past two years I've visited my bank only once, so phone banking is very convenient for me."
Her bank even picks up her salary cheque from her home and deposits it for her.
You can use most of these facilities on your mobile phone as well anytime, anywhere. In addition, you can subscribe for SMS alerts for all your transactions and payments.
Automated Teller Machines
ATMs have been around for a while. Today, you can find an ATM at almost every corner and even at airports and railway stations. Most large banks have huge networks of ATMs across the country, and you're sure to find one within your reach.
At an ATM, you can do numerous transactions. All you require is an identification number.
Depending on the bank in question, there will be a whole array of services available. All the available transactions or facilities appear on the ATM screen when you put your card in the slot.
You can withdraw and deposit cash, check on your bank balance, get a mini statement, request for an account statement, deposit cheques, request for a cheque book, transfer funds between accounts, pay bills, buy or sell mutual fund units and purchase mobile recharge cards.
ATMs have limits on the amount you can withdraw in a single day (ranging from Rs 10,000 to Rs 25,000) Since banks are now offering ATM cards that double up as debit cards, it allows you to minimise the number of cards in your wallet.
Most of these services are free and provided to an account holder by default. You get them once you have a savings account with the bank.
In case you misplace/ forget your password/ identification number, all you need to do is approach the bank. Once they confirm your identity, you will be given a new password/ number. You can even do this on the phone.
Similarly, if you continuously use the wrong password/ identification number, your access to the facility you are trying to use -- be it Net banking, Phone banking or an ATM -- will be frozen (Concerned about the safety of these services? Watch out for our article on online banking safety.).
Some services like debit cards may attract an annual fee, usually after the first year. You will even to pay a card replacement fee if you lose your card or, in some cases, even if it is damaged.
Should you want to discontinue your telebanking or online banking, you can opt out of these services by contacting your bank.
Different banks offer different services, and list above is only an indicative one. Check with your bank what is offered for each service.
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