Executive Summary Internet is increasingly used by banks as a channel for receiving instructions and delivering their products and services to their customers.
Different banks follow different levels for providing services on internet.
Compared to banks abroad, India banks offering online services still have a long way to go in terms of number of users and sufficient infrastructure in place.
Various security options are in place or are being looked at; however, Certification Authority is still missing in India.
Also there are various risks associated with internet banking such as Operational Risk, Security Risk, Cross Border Risks, Legal Risk, etc.
The Basel Committee’s Electronic Banking Group (EBG) in late 1999, tried to develop risk management guidance for Internet banking that will guide bankers and promote effective and consistent bank supervision around the world.
The use of Information Technology in banking enables the banks to provide Any Time Banking, Customer Service, Telebanking, Home Banking, Plastic Card Services, etc., facilities.
However, these facilities alongwith certain advantages these have certain disadvantages too.
Concluding this, India is on threshold of a major banking revolution with the invasion of net banking and with the concept of payment gateway coming in; banks are vying with one another for the lion’s share in the market.