Advantages and Disadvantages of E-banking

E-banking is a system of banking which is carried out with the use of electronic tools and facilitated through electronic delivery channels.

Advantages of E- banking:

• A higher degree of personalization
• Round the clock services will be available to the customer for all 7 days a week 24 X 7.
• Fastness and flexibility in the transactions
• Lower operating cost for banks
• Increased speed and accuracy of information exchange
• Bank account can be easily accessed from anywhere and at anytime
• Leads to greater customer satisfaction

Limitations of E-Banking:

• Non availability of internet connection, with high speed bandwidth in the rural areas
• Imparting training to banking staff is a bigger challenge.
• Resistance to paperless transaction by the customer,as they may prefer evidence for their transaction on paper.
• Problems may crop up regarding security and reliability.
• Although the technology is advancing, our legal environment is not in a position to keep pace with the technology.
• High illiteracy rate in india, is a hindrance to e-banking.