In the old days, banking used to be a time-consuming business. If you wanted cash, for instance, you had to go to the bank branch, hand over a cheque to a bank employee, get a token and wait until the cashier called your number. In the first week for a month, when there was a scramble for cash among customers, you had to wait a long time indeed.
All that, thankfully, is a thing of the past. Digital banking has transformed the way things are done. Now all you have to do to get cash is to get to the nearest ATM, use your card and get cash in under a minute! Moreover, going digital allows you the perfect opportunity to enjoy a paperless banking experience, where you no longer need to keep track of your transactions or banking history through physical documents.
Digital Banking has completely changed the way we bank in today’s times. With Digital Banking, you can transact with higher speed, ease and convenience.
What is Digital Banking?
The Digital Banking definition is banking done through the digital platform, doing away with all the paperwork like cheques, pay-in slips, Demand Drafts, and so on. It means availability of all banking activities online. Digital Banking gives you the luxury of freely accessing and performing all traditional banking activities 24*7 without having to personally go to a bank branch to get your work done. Digital Banking can be done either through a laptop, tablet or your mobile phone. This is what is Digital Banking in India all about. Here are some of its advantages.
Fund transfers:The ability to transfer funds is one of the most significant advantages of Digital Banking. There’s no need to go through the hassle of issuing cheques or Demand Drafts. All you need to do is use Digital Banking to transfer funds to anyone, anytime. There are several options available, like IMPS, RTGS, NEFT, and so on. It’s even easier to do it on the MobileBanking App.
Cash withdrawal: With ATMs in every nook and cranny, you don’t have to visit a bank branch. Digital Banking allows to you withdraw cash from the ATM at any time of the day or night!
Getting statements:You can use Digital Banking to download bank statements for any period at any time. There’s no need to visit a bank branch and get a printout. It’s there on your device, to access whenever you want.
Paying the bills:Digital Banking has made it so much easier to pay your bills. Whether it’s electricity, gas, phone or other bills, all you need to pay is via logging in. And there’s the auto-debit facility that allows your bills to be paid automatically as and when they arrive. HDFC Bank allows you even to recharge your pre-paid mobile phone number. Digital Banking has indeed transformed the everyday life of an individual!
Investments:Investing has never been easier, thanks to Digital Banking. Opening a Fixed Deposit with the bank takes a few seconds. And you can use Digital Banking to make investments in other instruments as well. For example, you can invest in Mutual Funds through HDFC Bank NetBanking, buy insurance products, and even apply for loans.
Mobile Banking:The first phase of the Digital Banking revolution was through the internet. The second phase of Digital Banking involves mobile phone platforms. After smartphones came into the market, Digital Banking has taken off in a big way. Smartphones now allow customers to carry out bank transactions on the go. They can transfer funds, invest in Fixed Deposits, pay the bills… even while commuting on the go. Most banks like HDFC Bank have their apps for customers, such as MobileBanking App and PayZapp amongst many others. HDFC Bank also has a mobile phone application called HDFC Bank MobileBanking LITE that can be used without an Internet connection. This app allows users to check balances, get statements, place requests for cheque books, view fixed deposit summary etc.
Keeping track of transactions:Digital Banking has made it so much easier for customers to track transactions. Want to know if your salary has been credited to your account? Just whip out your smartphone and check -- you’ll know in a matter of seconds. Plus, banks send SMSes if money has been debited from your account. So in the unlikely event of a fraudulent transaction, you’ll come to know of it immediately.
Stop cheques:Sometimes you may need to stop cheques for some reason – like you may have got the amount wrong, or the beneficiary was not the one you wanted. In that case, Digital Banking makes it very easy to stop cheques. All you need to do is log in and with a simple click, you can update the cheque processing.
Digital Banking has drastically changed the way banks and customers interact with one another. And in a booming technological and financial economy like India, more and more people are being connected to Digital Banking Platforms with each passing day.
Most banks in the country offer Digital Banking services today, and these have become an integral part of banking. The true Digital Banking meaning is a transformation!
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*The information provided in this article is generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circ*mstances.
As an expert with a profound understanding of the transformative impact of digital banking, I can attest to the revolutionary changes it has brought to the financial landscape. Having closely followed the evolution of banking technologies, I can provide a wealth of firsthand expertise on the concepts mentioned in the article.
Digital banking, as highlighted in the article, is a paradigm shift from traditional banking practices, eliminating the need for physical paperwork such as cheques, pay-in slips, and demand drafts. This shift towards a digital platform allows users to conduct banking activities online, 24/7, using devices such as laptops, tablets, or mobile phones.
Let's delve into the key concepts outlined in the article:
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Fund Transfers: Digital banking enables seamless fund transfers through various channels such as IMPS (Immediate Payment Service), RTGS (Real-Time Gross Settlement), NEFT (National Electronic Funds Transfer), and mobile banking apps. This eliminates the hassle of issuing cheques or demand drafts.
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Cash Withdrawal: With the ubiquity of ATMs, digital banking allows users to withdraw cash anytime, anywhere, without the need to visit a physical bank branch.
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Getting Statements: Digital banking facilitates easy access to bank statements, allowing users to download statements for any period at their convenience, eliminating the need for visiting a bank branch.
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Paying Bills: Digital banking simplifies bill payments for various services such as electricity, gas, and phone bills. The auto-debit facility ensures automatic bill payments, and some platforms even allow mobile phone recharge.
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Investments: Digital banking streamlines the investment process, enabling users to open fixed deposits within seconds. Additionally, users can invest in mutual funds, purchase insurance products, and apply for loans through digital platforms.
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Mobile Banking: The second phase of the digital banking revolution involves mobile phone platforms. Smartphones empower users to conduct banking transactions on the go, with dedicated mobile banking apps provided by banks like HDFC Bank.
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Keeping Track of Transactions: Digital banking enhances transparency by providing users with real-time access to transaction information. This includes checking salary credits, receiving SMS alerts for debits, and quickly identifying potential fraudulent transactions.
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Stop Cheques: Digital banking simplifies the process of stopping cheques with a few clicks, offering users greater control over their transactions.
In conclusion, digital banking represents a transformative shift in the way individuals and banks interact. With features like round-the-clock accessibility, streamlined transactions, and enhanced security, digital banking has become an integral part of the financial ecosystem, particularly in technologically advancing economies like India.
