What is Net Banking, and What are its Types?

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The internet has made everything around us very easy and convenient. We use it in our daily lives, and almost everything we do is somehow related to the internet.

Net banking, which is also called e-banking or online banking, is a way to access many banking services through the internetIt eases the work of both the banks and the customers. It is vital for bank account holders to get hold of their bank accounts and control them as per their needs, and net banking has been aiding in doing it efficiently. Everything from money transfers to balance inquiries can now be done through the internet. You can apply for loans or invest in financial schemes on the net banking apps. All thanks to net banking, your banks are now just a tap away!

In this article, we shall discuss net banking, its benefits, and the several types of internet banking available for bank account holders.

Features of Net Banking

The several features of internet banking are discussed as follows:

  1. Safe & Secure: Net banking is way safer than manual banking. You can quickly transfer money from your account to another bank account without the burden of carrying the cash manually. It is secured with a personal net banking ID and password, which only you can access.
  2. Very Easy: Almost all banks have their mobile banking apps now. These apps have a very easy user interface that anyone can operate.
  3. No Restrictions: Net banking can be done at any time and anywhere. Unlike manual banking, where the banks shut around 5 pm and does not work on weekends, net banking is available 24×7.
  4. Various Facilities: All banking facilities, like NEFT, RTGS, IMPS, fixed deposits, recurring deposits, loans, EMIs, debit or credit card control, etc., can be done and managed through net banking.
  5. Card Login: Users can also access their net banking accounts by card login. You must enter your credit or debit card number in the login input and enter the OTP received on your mobile number. You are advised not to share your card number, CVV, or OTP with anyone to avoid banking fraud.

How to Register for Net Banking?

The banks provide net banking right after you open a bank account with them. Just in case your bank has not activated your net banking after your account opening, follow the steps given below to register:

  1. Fill out a net banking application form at your home bank branch. Also, provide the documents, like a passbook, an Aadhar card, etc., with the form to the bank authorities.
  2. The bank will issue you an ID and a password for net banking.
  3. Visit the official website of your bank and click on the net banking option.
  4. Input your ID and password, and access your account.

Types of Net Banking

The several types of net banking available for the users are as follows:

  1. National Electronic Fund Transfer (NEFT): This online banking system allows you to send money from one person to another. You can quickly transfer money from your bank account to any other bank account online by paying a small fee. All you need to have are the bank account details of the beneficiary.
  2. Real Time Gross Settlement (RTGS): In this online money transfer method, the funds are transferred from one bank account to another in “real time,” i.e., without any waiting period. It is a quicker fund transfer method than NEFT.
  3. Immediate Payment Services (IMPS): It is an instant inter-bank fund transfer method that can be done online and is available 24×7. You can even transfer money from your banking apps through IMPS. The Unified Payments Interface, or UPI, is based on the infrastructure of IMPS.
  4. Debit card or credit card: Thanks to credit and debit cards, we can all go cashless now. You can withdraw money using these cards from any ATM, anytime, anywhere. You can even use these cards to pay online by providing your card details.
  5. Electronic Clearing System: Through this online payment method, you can pay your electricity, phone, utility bills, etc., quickly without manually paying them.

Advantages of Net Banking

The several perks of net banking are discussed below:

  1. No time restrictions: You can access net banking anytime; it is available 24×7. Most banking services are available around the clock; you only need internet access, and your bank is just a tap away.
  2. Quick and easy: Net banking saves much of your time by quickly transferring funds. All other services are also very easily accessible, and you do not have to take time for them.
  3. Safe and Organised: Since net banking is secured with personal customer IDs and passwords, it is a safe way to carry out transactions. Also, the apps or interfaces you use for net banking are pretty organised and keep a record of all your transactions. You can check your transactions at any time.
  4. Eco-friendly: Net banking cuts a lot of paper usage. Since you can fill out all the forms online, use online passbooks, and carry out other banking processes which need paper, online you use the least paper, thus, helping nature.


Through net banking, you can easily track your financial activities and manage them without any issues. It is a secure payment system for users and aids in avoiding cash loss and theft. However, it is dependent on a smooth internet facility. Thus, not all classes of people can have access to it. But still, this virtual way of banking is a huge benefit to the country’s banking sector and would help in the nation’s overall growth.

Read more related blogs on the Piramal Finance website to explore our financial products and services, especially those on personal loans, credit cards, and financial calculators.