enables customers of a bank or other financial institution to conduct a range of financial transactions through the financial institution's website. The online banking system will typically connect to or be part of the core banking system operated by a bank and is in contrast to branch banking which was the traditional way customers accessed banking services. Some banks operate as a "direct bank" (or “virtual bank”), where they rely completely on internet banking. Internet banking software provides personal and corporate banking services offering features such as viewing account balances, obtaining statements, checking recent transaction and making payments. The term online banking is basically what is called internet banking, e-banking or virtual banking. A customer uses an electronic medium to visit the website of a banking institution for financial transactions. Both, the medium and the financial service provider together form the term Electronic Banking. Home banking is the practice of conducting banking transactions from home rather than at branch locations. Home banking generally refers to either banking over the telephone or on the internet (i.e. online banking). The first experiments with internet banking started in the early 1980s, but it did not become popular until the mid-1990s when home internet access was widespread. Today, a variety of internet banks exist which maintain few, if any, physical branches. The increasing popularity of home banking has fundamentally changed the character of the banking industry. Many people are able to arrange their affairs so that they seldom have need of a physical branch. Online-only banks have profited from this shift in the industry. The absence of brick and mortar locations allows many online banks to offer favorable interest rates, lower service charges, and many other incentives for those willing to bank online. Online banking has become nearly synonymous with home banking as most prefer to bank via the internet instead of over the telephone. Online banks (or banks with online options) allow access for the majority of daily, traditional transactions, including deposits, checking account services, and some basic financial products like savings accounts. Online banking is generally available for both individuals and small businesses. Mobile banking is the act of making financial transactions on a mobile device (cell phone, tablet, etc.). This activity can be as simple as a bank sending fraud or usage activity to a client’s cell phone or as complex as a client paying bills or sending money abroad. Advantages to mobile banking include the ability to bank anywhere and at any time. Disadvantages include security concerns and a limited range of capabilities when compared to banking in person or on a computer. Mobile banking is very convenient in today’s digital age with many banks offering impressive apps. The ability to deposit a check, to pay for merchandise, to transfer money to a friend or to find an ATM instantly are reasons why people choose to use mobile banking. However, establishing a secure connection before logging into a mobile banking app is important or else a client might risk personal information being compromised. Cybersecurity has become increasingly important in many mobile banking operations. Cybersecurity encompasses a wide range of measures taken to keep electronic information private and avoid damage or theft. It is also used to make data is not misused, extending from personal information to complex government systems. Backdoor attacks, in which thieves exploit alternate methods of accessing a system that don't require the usual means of authentication. Some systems have backdoors by design; others result from error. Denial-of-service attacks prevent the rightful user from accessing the system. For example, thieves might enter a wrong password enough times that the account is locked. Direct-access attack includes bugs and viruses, which gain access to a system and copy its information and/or modify it. A virtual bank doesn't have to pay for physical branches nor the employees to staff those branches. This is a tremendous cost savings, and the savings are usually passed along to customers in the form of higher interest rates on savings, lower interest rates on loans and lower banking fees. Five Advantages of Online Banking. Most banks offer online banking, and you can pay your bills, transfer money, and access a record of your checking account transactions, all from your web browser. Banking from the comfort of your sofa makes everything you do with your finances a bit easier. Two of the biggest advantages to online- only banking are the high interest rates and low fees. Online-only banks don't pay overhead for physical branches or the employees to staff them. Instead, they pass those cost savings on to customers in the form of higher interest rates and lower fees. Electronic Payment is a financial exchange that takes place online between buyers and sellers. The content of this exchange is usually some form of digital financial instrument (such as encrypted credit card numbers, electronic cheques or digital cash) that is backed by a bank or an intermediary, or by a legal tender. An electronic payment is any kind of non- cash payment that doesn't involve a paper check. Methods of electronic payments include credit cards, debit cards and the ACH (Automated Clearing House) network. The ACH system comprises direct deposit, direct debit and electronic checks (e-checks). Using digital payment can be the biggest motivator for easy money transactions. Since it is digital, there will be no need to carry cash, cards or even queue to withdrawals money at ATM. ... Using digital payment also can be safer and easy. Online banking service to make the transaction process easy and safe. ATM and debit card services to provide instant cash to the customers. Phone banking service to benefit the customers by saving their time. SMS banking to provide alerts and information to the customers. Mobile banking to provide ease to the customer for making transactions using mobile phones. Fund transfer services through various channels. Point of sales banking. The electronic medium has always provided the innovative base to the banking institutions in their progressive journey of providing better, safe, and easy services to the customers. The earliest mode of transactions, the cheques, were first introduced in Indian banking system by Bengal Bank in 1784. Then came ATMs in 1987. HSBC took the initiative of introducing ATM in India. In India, ICICI introduced internet banking facility. The extensively used Electronic Banking service among customers in India is ATM. Today ATM service is not confined to withdraw cash only as it was in the beginning. Customers use this facility for various other purposes including To enquire about account balance To get bank statement of a limited period of time Customers can use ATMs for changing PIN. Customers can also use ATMs to deposit Cash Customers can use ATMs to deposit cheques Customers can use ATMs to transfer amount to other bank accounts Customers can make Credit Card Payments Development of Electronic Banking has been expedited by initiatives from Indian Government and the RBI (Reserve Bank of India). The Indian Central Government has enacted an IT ACT concerning development, legalities, and other issues of e-banking. This IT Act, 2000 is responsible for recognizing whether an electronic transaction is legal or not. The other platforms of electronic commerce also stand within the legal periphery of the IT ACT, 2000. Advantages of e-banking are numerous. It provides ease and convenience to the customers in operating an account. The customers can conduct transactions of different types using platforms like bank website, online applications, e-commerce portals, etc. It saves time, manpower, and resources of the banks. The banking has become cheaper using this technology. Efficiency of banks has The reach of banks is wider than earlier. Customers can manage almost every type of transactions using e-banking. Bill payments, sale-purchase, operating Demat Accounts, money transfer, and a number of convenient services provided by the banks are now can be operated through one channel i.e. Electronic Banking.