E-Banking is also known as online-banking or
internet banking or virtual banking. It is an electronic payment / transactions
system that enables customers to get the things done without going to the bank.
He may do it from home / office or while at move.
Online banking was first
introduced in the early 1980s in New York, United States, Four major
banks, Citibank, Chase
Bank, Chemical Bank and Manufacturers Hanover, offered home banking services. Chemical introduced
its Pronto services for
individuals and small businesses in 1983, which enabled individual and
small-business clients to maintain electronic checkbook registers, see account
balances, and transfer funds between checking and savings accounts.
The term ‘online’
introduced and became popular in the late 1980s and referred to the use of a
terminal, keyboard and monitor to access the banking system using a phone line.
Online services started using the videotex system. Because of the commercial failure of
videotex these banking services never became popular except in France where the
use of videotex (Minitel) was subsidised by
the telecom provider and the UK, where the Prestel system was used.
Internet is a vast network of individual computers and computer
networks connected to and communicate with each other using the same
communication protocol – TCP/IP (Transmission Control Protocol / Internet
Protocol). When two or more computers are connected a network is created;
connecting two or more networks create ‘inter-network’ or Internet. The
Internet, as commonly understood, is the largest example of such a system.
Internet is often and aptly described as ‘Information Superhighway’, a means to
reach innumerable potential destinations. The destination can be any one of the
connected networks and host computers.
TCP / IP protocol is insecure because data
packets flowing through TCP / IP networks are not normally encrypted. Thus, any
one who interrupts communication between two machines will have a clear view of
the data, passwords and the like. This has been addressed through Secured
Socket Layer(SSL), a Transport Layer Security (TLS) system which involves an
encrypted session between the client browser and the web server.
is the latest industry standard which provides wireless access to Internet through
handheld devices like a cellular telephone. This is an open standard promoted
by WAP forum and has been adopted by world’s all major handset manufacturers.
WAP is supplemented by Wireless Application Environment (WAE), which provides
industry wise standard for developing applications and services for wireless
communication networks. This is based on WWW technology and provides for
application for small screens, with interactive capabilities and adequate
security. Wireless Transaction Protocol (WTP), which is the equivalent of TCP,
sets the communication rules and Wireless Transport Layer Security (WTLS)
provides the required security by encrypting all the session data. WAP is set
to revolutionize the commercial use of net.