We use technology and electronics to make our life easier and to resolve our tedious tasks. Online banking is one of those technologies. It can be defined as an account which is operated online or through instant transfer of money and funds. Online banking is the best way to save our money. It works on the idea of lending, serving and earning. Online banking means you have your bank account with you 24/7. You don’t need to go to the bank to view your transaction, pay your bills, transfer money and order cheques. If you have access to the internet, you can use online banking anywhere. A central bank, on the other hand, is one that manages the nation’s money supply. Along with supervising monetary policies, they control the interest rate of monetary policies and act as a lender of last resort to the banks during bankruptcy. It keeps an eye on all the banks and other online transactions.
Online banking became popular in the late 80’s and it was used through telephone lines in the early days. In 1981 using the videotex system, four major banks of New York offered home banking services. Videotex is an electronic device used in online banking and data acquisition. But because of marketable failure of videotext, the banking services in those days never became popular.
It has now become common goings-on as almost everyone now prefers to use their account online. It’s easy to start using online banking. Its greater benefit is that you get a higher rate of interest from online banking as compared to what you get from a brick and mortar competitor. One of the major advantages of online banking is that it has reduced man power. You don’t have to be bound with time. You can operate your account anytime. Payment of tickets, market share are done with online banking. With the help of online banking you can pay your electricity, gas, credit card, mobile, utility and telephone bills. It will save you from the mess of getting your mail stamped and the fear of losing it. The receiver will immediately receive the money. You can keep a track of your transactions. If you have lost your receipt you can easily view your transaction, the amount has been withdrawn or done online. You can always get the updates of your account. Central Banks have the responsibility of supervising online banking and other economic institutions from irresponsible and falsified acts. Exchange settlement account (ESA) is the foremost aspect of a central bank. All banks have to maintain with central banks. All the transactions are done under the eye of Central bank. Online banking will make your financial life much easier and this facility is becoming common in almost every bank. There has been a 45% increase in the rate of online banking.
Tips and comments
The system of online banking has made it very convenient for everyone to manage their bank accounts now. In the fast-paced world that we live in, this blessing has made it much easier to pay utility bills and transfer money. If you are interested in starting up banking online, you have to go to the main branch of your bank from where you will get the application form. There is no such thing as getting a form online. However, never give your online bank account password to anyone. Neither should you write it down on anything because there would be a great risk of your account getting hacked and your money stolen and mismanaged.
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