e-BANKING PAYMENT & SETTLEMENT SYSTEM

AUGUST,2013

 Electronic Banking is done with the help of technology use of internet in day to day banking thrust given by RBI & all banks, encouraging customers to use technology as much as possible while carrying out banking transactions. eBanking is efficient, safe, secure, transparent, fast & accurate. ore Banking !olutions " B!# connectivity among the branches of the same bank. e $ayments vi%. R&'!, (E)&, E !, E)& vis a vis *igh +alue learing "*+ # , ,I R clearing etc. Effective tool for financial market clearing and other retail payment facilities

e - Banking

PAYMENT & SETTLEMENT SYSTEM

-n Important ingredient of an efficient financial system is the ability of intermediaries to effect smooth and secure transfers of money and e.change financial claims embedded in financial instruments. In /001 RBI was empowered by the enactment of the $ayment & !ettlement -ct, /001 to regulate and supervise payment & settlement systems in India, formulate relevant policies and provide a legal basis for multilateral netting and settlement finality. &o operationalise the -ct, RBI framed the 2Board for Regulation and !upervision of payment & settlement system Regulations, /0034 and 2$ayment & !ettlement !ystems Regulations,/0034.

PLASTIC MONEY & e-MONEY

$lastic money refers to substitution of currency at the time when a payment is taking place by using a card normally made of plastic. &ypes of plastic money 5 e6money 7 i# redit ards ii# 8ebit ards iii# other payment channels 5 products vi%. -&,s, ,obile banking, pre6paid payment instruments like &ravel card, pre6paid card etc.

SECURITY ISSUES IN e-BANKING

&he ,ost prevalent types of internet frauds are 7 1 I!en"i"# "$e%"& ' In the virtual world, a person9s identity is defined by the :ser name and $assword. Identity theft is the misuse of personal data to abuse the victim9s banking facilities. 2 Ca(!ing ' arding sites can be found on the Internet, where fraudsters buy and sell access to bank accounts, stolen card numbers, dumps from magnetic strips etc. 3 Ski))ing ' It constitutes the unnoticed duplication of electronic data from a payment card. - copying device is installed in front of the original card slot of an -&,, which transcribes the information from the magnetic strip on a card inserted by the customer. !ometimes, these devices can be a camera or a fake touch pad to duplicate the keystrokes used for password entry.

SECURITY ISSUES IN e-BANKING

;. P$i&$ing ' 2$hishing4 is a famous word these days signifying fraudulent capture and recording of customers9 security details, to be used later for committing fraud. $hishing activities as well as anti6phishing measures have reached such levels of fren%ied activity, that an -nti6$hishing <orking 'roup "-$<'# has been formed as a global pan industrial and law enforcement association, focused on eliminating the fraud and identity theft. =. M*+e& ' ,ules are individuals recruited over the internet with the sole purpose of being the intermediaries for illegally ac>uired funds