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Advantages and Disadvantages of E-banking

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.