NepalNews

E Banking in Nepal : Internet Banking in Nepal

This post is about E Banking in Nepal or Internet Banking in Nepal. Here we have focused on the ebanking, internet banking, electronic banking, phone banking, mobile banking, ATMs banking in context to Nepal country.

The term ‘Internet Banking in Nepal’ can be defined as net banking or ebanking in Nepal. Net banking is a system of banking in which customer can view their accounts details, pay bills and transfer money by means of internet.

Emerging stage of (Ebanking) Internet Banking in Nepal

Banks are facing with higher operating costs in comparison to reduced bank charges and interest earned in recent years. To control the operating cost, they have increasingly turned toward automation and electronic networks to replace labour based production systems, especially for taking deposits, dispersing payments and making credit available. The most prominent examples includes ATMs (Automated teller machines). There are well over 200,000 ATMs in the United States today, Nepal has about 600 ATMs introduced by most banks. But they are basically concentrated in Kathmandu valley. ATMs facility gives customer 24 hour access to their deposit accounts. However, a substantial proportion of bank customers still prefer personalized service and the opportunity to consult personally with their bankers about a broad range of financial matters. Other important examples are point of sale (POS) terminals in stores and shopping centers that replace paper based means of paying for goods and services, and computer networks that rapidly process millions of transaction among the branches.

Ebanking is the short form of Electronic banking. Ebanking is an umbrella term for the process by which a customer may perform banking transactions electronically without visiting the physical premises of the financial institution.

According to this definition, it is not surprising to know that in the Nepalese financial sector are using ebanking. Nepali banks are also giving services the internet banking in Nepal. Ebanking is not the new concept in Nepal. Ebanking is the aspect of modern banking.

Introduction of (Ebanking) Internet Banking in Nepal

Internet banking, sometimes called as online banking is an outgrowth of PC banking. Internet banking uses the internet as the delivery channel by which to conduct banking activity, for example, transferring funds, paying bills, viewing checking and saving account balances, paying mortgages and purchasing financial instrument and certificate of deposits. An internet-banking customer accesses his or her accounts from a browse -software that runs internet banking programs resident on the bank’s World Wide Web server not on the user’s PC. Net banker defines a ‘net internet bank’ as one that provides accounts balances and some transactional capabilities to retail customers over the World Wide Web. Internet banks are also known as virtual, cyber, net, interactive or Web banks. The bank updates accounts and records of transactions almost instantly on the internet. This focus of banking comes with both benefits and scans. Banks needs to enhanced security measures to ensure the safety and privacy of internet transactions but also it is said that internet provides a secure medium for transferring funds electronically between provides a secure medium for transferring funds electronically between banks accounts and also for making banking transactions over the internet. By this system, all banking activities that were conventionally done by visiting a bank can now be done through a computer with internet access. Credit cards transactions are a form on internet banking.

With net banking, we can not only view own account balance but also open a fixed deposit, transfer funds, pay electricity and telephone or mobile bill and much more. Through net banking, we can not only view one account but actually can view many banks account at the same time.

Finally, the banking transactions such as transfers, payments and often home loans applications can be made via the internet is net banking. In other words, it is a facility for the customers to use the internet, a decentralized electronic network with World Wide Web access, to obtain account/custody account information and place payment and securities orders. Internet banking is one of the forms of home banking.

Nepali banks have also decided to leave manual transaction in banking sectors of Nepal. They are also commencing theirs business with the use of computers.

The following terms all refer to internet banking. Electronic banking are also refers to personal computer (PC) banking, virtual banking, online banking, home banking, remote electronic banking, mobile banking and phone-banking.

Nepalese financial market the institutions have not considered as involved in the EBANKING unless and until they have ATM machines.

Thus, banking is becoming more of a capital intensive, fixed cost industry and less of a labour intensive, variable cost industry. Many experts believe that transitional brick and mortar bank buildings and face-to-face meetings between bankers and their customers eventually will become relies of the past, replaced by electronic communication. Service production and service delivery will be fully automated. Such steps will significantly lower per unit cost associated with high volume transaction. But they will depersonalize banking and result in further loss of jobs as capital equipment is substituted for labour. Recent experience suggests, however, that fully automated banking for all customers may take a long time.