Ruzbeh Raja is an Information Technology Consultant with over 20 years of experience in the IT industry. He is also a Visiting Professor of Law in the University of Mumbai.

In today’s digital world, online banking (net banking and mobile banking) has become a popular choice for many people in India. It’s not just convenient, it’s also safer in many ways compared to traditional physical banking. Many Senior Citizens are not comfortable with Net-banking or Phone-banking and have not opted for these free services for fear that their money may be stolen online or may be lost to scammers.

Although we read about a lot of online scams and numerous ways in which people have lost money through fraudulent calls or SMS, most of these incidents could have been completely avoided by just being alert and aware. Let’s look at why net banking and mobile banking are safer than physical banking.

Better Security Features

– Net banking uses advanced technology to ensure the information sent between your computer or phone and the bank’s server is secure. This makes it very hard for hackers to steal your data. Most online banking services ask for two forms of identification, like a password and a one-time code sent to your mobile phone, adding an extra layer of protection.

– Banks allow you to set limits for every type of transaction and also allow you to lock your Debit Card, Online Transactions, UPI Transactions and also limit individual beneficiaries, so that you cannot transfer a large amount by mistake. Eg: You can set a limit of Rs. 8,000 for your domestic help’s salary and set a limit of Rs. 2,000 for the Kirana Store.

– You can also temporarily turn off and on all your online transactions at any time from your mobile phone or bank’s website.

Less Risk Of Physical Theft Or Forgery

– Carrying cash or bank cards to the bank increases the chance of being pickpocketed. Net-banking eliminates this risk since you don’t need to carry these items.

– Cheque Forgery is completely eliminated as banks use your password and Multi-Factor Authentication to ensure that your consent is taken before money is transferred from your account.

– Banks are targets for robberies – but net-banking negates the risk of your being present during such incidents.

Convenience And Accessibility

– You can access your bank account anytime, from anywhere. This means you can quickly check your account and spot any suspicious activity immediately.

– Net banking reduces the need for paper documents, which can be lost or stolen, thus your records are stored securely online.

– You can apply for various subscriptions and buy goods and services within a few seconds Eg: Booking flights, Booking Hotels, Buying shares and bonds, Book movie tickets.

– Online banking is especially useful if your signature is not consistent, as it needs no physical signature, just your password or your phone’s fingerprint reader to transact.

Advanced Fraud Detection

– Banks analyze your typical transactions and flag any unusual activity. Many banks will make verification call and also send you SMS alerts for large withdrawals or suspicious transactions.

– If a transaction is made from an unexpected location, the bank may ask for extra verification to ensure it’s really you.

Strict Regulations

– Banks in India are strictly regulated by RBI, maintaining some of the and modern security measures in the world.

– RBI recently issued guidelines to banks to use a risk-based security methodology that takes into account the transaction value, origination channel, customer and/or beneficiary risk profiles, among other factors, to determine whether a transaction is genuine or fraudulent.

As Good As Free

– Almost all banks in India charge nothing for online banking services. A nominal fee is charged for transferring money – equivalent to the Cheque-Book issuance fees. SMS alerts for transactions are charged between Rs. 5 to Rs. 25 per quarter, which is also very miniscule compared to the ease of knowing your account balance and instantly keeping track of transactions.

While visiting the bank in person has its benefits, net banking and mobile banking offer a safer and more convenient way to manage your money. With its strong security measures, reduced physical risks, and the ease of online access, Online Banking provides a secure platform for your financial needs. By staying informed and cautious, you can use net banking confidently and safely.