Advantages and Disadvantages of Internet Banking

Internet banking as the name suggests is a service using which a customer can do various banking activities like transferring of funds from one account to another, online view of his or her transactions, payment of expense etc.., from home or office, the only thing one needs to have is computer and internet connection. Given below are the advantages and disadvantages of internet banking –

Advantages of Internet Banking

1. One can do online fund transfer using real time gross settlement from one bank account to another from home without going anywhere and hence it saves lot of time and energy of the account holder.
2. The customer does not have to stand in long queues because internet banking provides the customer with majority of services which is available in normal banking operations.
3. Apart from banking services one can use internet banking for many things like booking railway tickets, booking movies tickets, paying electricity and mobile bill, doing online shopping and so on.

Disadvantages of Internet Banking

1. The biggest disadvantage of internet banking is that the chances of fraud increases because on internet there are many hackers who by sending emails get information from account holders about their bank account number and password and transfer the money from customer account to their accounts.
2. Another disadvantage is that since it requires internet connection and computer not many people can use it as not all people have computer and required technical knowledge to operate their bank account online.
3. Internet banking is not equivalent to banking because for depositing cash or withdrawing cash one has to go to the bank or ATM and internet banking is of no use for such type of transactions.