What is net banking, and how does it work?

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Net banking encompasses the area of digital commerce, or e-commerce. The rise in internet use has provided many ways to transact money in recent years. Everything is possible if you do your bank login right from booking flight tickets to shopping online. Net banking is a very helpful process that makes your life easier. In basic terms, net banking is a digital method where a transaction or transfer of money is done using the internet. A big advantage of net banking is that you don’t have to go to the bank physically for transactions. You can use the internet to transfer funds, money, and payments. You only need a functional computer (laptop or desktop) or a smartphone with a good internet connection.

Certain unique features of net banking include:

  • Tracking, managing, and monitoring bank balances and statements are easier.
  • NEFT, RTGS, and IMPS methods can be used to transfer funds online.
  • It is a secure method of banking.
  • It allows password-protected banking.
  • A bill payment system that is quick and easy.
  • To channel or cancel automatic payments.
  • Easily accessible banking services, which can be financial or non-financial.
  • The accessibility of your bank account increases as it becomes more convenient to access it anytime, anywhere.

Why choose internet banking?

Technology has changed our way of living in many ways. We are now in a busy world where we have no time to spend in banks waiting in a queue. Technology makes your life easier by allowing you to pay the money within seconds. Maybe in the future, we will just use online transactions and not use notes and coins made of paper and metal.

So that brings us to the question: how does net banking work?

The bank will send you a user ID and password when a bank account is opened. Note the password and the user ID correctly because you will need them from time to time; after that, visit the bank’s website on your computer or smartphone. The net banking login asks for the necessary information that you need to fill up on the website. After the bank login is activated, an option appears where you can change the password. Finally, you can easily access the financial services that your bank has to offer. Remember that bank login should be done carefully online. Make sure to check the website properly to avoid any kind of fraud. You need to know all about bank logins if you plan to do online banking because it’s the first step. 

For opening a net banking account, there are a few steps which are as follows:

Step 1: The first step is applying for a net banking account. You need to reach the bank to activate your online banking. If you have an existing account, you can talk to the bank administration about it. Approval from the bank is necessary for starting online services. You cannot use the services because high security is necessary for digital transactions. Once your bank has accepted your request for online banking, it sends you two key codes that allow you to continue with your net banking login

Step 2: Collect the User ID & Password for your net banking to work; have the User ID and password for bank login. You must request the bank for a User ID for you and a password. For new account applications, the user ID and password are given when opening the account. 

Step 3: Generating a new user ID requires a bank to provide you with a set of numbers. The bank will send the concealed document via electronic communication. The given password is used for bank login. After the first net banking login is done, the bank then requests that the users change their previous password. This is done to maintain the high security of the account. 

Changing the user ID after authenticating the first log-in is also advisable to ensure that you have a new set of user IDs and passwords.

You can change the user ID and password with the following steps: 

  • Firstly, you need to log in with your bank’s online website.
  • Then enter your respective User ID as well as password. They will be provided beforehand by your bank.
  • Then you can choose to log out.
  • When logging out, you will see one tab on the bank’s website for the new user ID. This will help you create a new or “fresh” user ID.
  • Once you choose a new User ID option, the website will ask for details from your side, like preliminary information like your date of birth (DOB), profession, mobile number, email ID, address, and other relevant information. The bank will already have this database secured with your KYC.
  • After entering vital information, you will be sent a one-time password to your registered phone number. The second stage of security assurance strengthens the security system to avoid unethical hacking.
  • You need to enter this password to create your desired user ID.
  • Similarly, follow all the same steps to create a new password for your account.


Overall, we can see the rising importance of Net banking in today’s time. It is very important that you first do the Net banking login properly before getting into any transaction. You can start your bank login in any previous account or start afresh. Be careful before putting in the details on the website to avoid unethical hacking of personal details. 

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