The Reserve Bank Of India introduced the electronification of retail payments back in 2008 to create a convenient and secure environment for virtual payments. The way it has manifested in recent years is commendable and paved the way for future technological advancements to elevate the country’s economy seamlessly.
Online banking, also known as net banking, is a payment system designed to enable the consumers of banks or any other financial institution to transfer funds to each other through the websites of those banks and financial institutions.
Debit card and credit card payment systems are one form of internet banking. In this format, the funds can be transferred electronically by any individual, bank or corporate firm to their respective counterparts within the country, even if they have their accounts registered in different banks.
Let us first try to decipher the various forms of internet banking:
- National Electronic Fund Transfer(NEFT) – People can exchange funds using this method. They only need a registered profile, a smartphone, and a smooth internet connection. What’s more interesting about NEFT is that it also allows walk-in customers of banks to transfer funds, even if they don’t have an account registered with their names. Although there is a particular limitation to such daily transactions, isn’t it so convenient for some people who need to be tech-savvy enough to leverage this technology independently?
If the person is willing to make a credit card bill payment using NEFT, then the person must be registered for the internet banking facility. Multiple billers can be chosen in one go, and a few fields need to be filled in before clicking the final payment button. Remittances made in this method can never be cancelled, and they incur lower costs than other alternatives, such as DDs.
- Real-time gross settlement- As the name suggests, this involves processing funds only in real time based on orders placed at that particular time. There is a stipulated minimum amount that can be transferred under this process. Since the transaction takes place in the book of RBI, the marketing, once processed, is irrevocable.
- An electronic clearing system – This is the most preferred alternative for utility bill payments such as telephone bills, electricity bills, loan repayments, etc. With this process, carrying paper documents is not required, and it serves as a great platform to provide adequate customer service to banks and other government organizations.
- Immediate payment service – It is the most easily accessible platform for making instant payments because of its availability 24*7. Funds can be transferred through mobile apps, websites, and ATMs. This provides robust security, especially in emergencies, and is safe from financial and non-financial perspectives.
If you look forward to credit card apply, then this format is the most compatible one for the card payment system as it enables the transfer to take place among modes such as mobiles, ATMs, bank branches, online banking, etc. The most significant advantage of using this payment system is that it is fast and reliable, basic log-in credentials must be furnished, and you are all set.