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PERSONAL FINANCE Is Net Banking For You? Yes, if you are a sucker for convenience and speed. And no, if you trust the Internet as much as you do your car mechanic. By Shilpa Nayak
Cut to Malhotra's anti-thesis: Govind Sharma, 50-years-old, senior executive, only once tried banking online, and quickly swore never to again. His problem: distrusts computers, misses human interface, and his first attempt at e-banking threw up a server glitch that gave him access to somebody else's account. Now, no amount of convincing will make him trust e-banking again. So, who's right? Or rather, should you be e-banking? The Lure Of Convenience Internet banking is just like normal banking, with one big exception. You don't have to go to the bank for transactions. Instead, you can access your account any time and from any part of the world, and do so when you have the time, and not when the bank is open. For busy executives, students, and homemakers, e-banking is a virtual blessing. No more taking precious time off from work to get a demand draft made or a cheque book issued. The most popular Net bankers are HDFC Bank and ICICI Bank, who do not charge any fee for this service. Citibank also offers Net banking facility (called Suvidha), but it is limited to Delhi, Mumbai, and Bangalore, besides a minimum balance of Rs 1,000 must be maintained in the savings account. There is a host of things you can do once you open a Net banking account. For instance, apart from routine stuff like checking balance, you can request for a demand draft, stop payment against a cheque, transfer funds within the same bank, and even pay your telephone and electricity bills (the latter in the case of both HDFC Bank and ICICI Bank). Efficiently Impersonal
While Net banking is no doubt convenient, the fact that there is no human interface can unnerve some customers (like Sharma), especially if they are not net savvy or are in a spot. Says Priti Arya, 26, who regularly Net banks: ''Initially, I didn't know that you are locked out if you don't use your electronic account for 180 days. Luckily, I remembered my password and, therefore, the bank was able to reactivate my account within a day of my telling them.'' Banks recommend a Pentium PC with 32 MB RAM, and 2.1 GB Hard Disk Space with 500 MB free space. Internet Explorer version 4.0 and above or Netscape Navigator version 4.0 and above. For a person like Rajesh's father, Mohan, Net banking is ruled out because he does not have a pc at home. According to Malhotra, having to remember the passwords for ATMs is hassle enough. ''The long pin numbers are very confusing'' says he. Besides, for most customers, there's nothing more reassuring than watching their cheques getting credit on a paper ledger. Then, there is the question of how real is real time. For instance, while you can requisition for, say, a new set of cheques any time of the day, the request will get processed only during the banking hours. Perhaps, the biggest of all concerns for e-banking customers is the security issue. People still aren't comfortable having information about their life's hard-earned money saved on a server they don't know about. A physical pass-book is still preferred. While e-bankers use multiple firewalls, filtering routers, 128-bit encryption and digital certification for safe and confidential transactions, there are still chances of a snafu. The risks are higher in the case of third-party transfers, which entail issuing or receiving payments to and from another person with an account with the same bank. While earlier this facility came along with the account by default, banks now insist that the customer sign a declaration form to avoid frauds. The moral of the story: e-bank only if you think you can handle all the downsides that come with the anywhere, anytime convenience.
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Rajesh
Malhotra, 29, a software executive with a multinational company, hasn't
been to his bank for ages now. It is not as if he doesn't pay his bills,
make fixed deposits, or run of out cheques. He does all that, except his
interaction with his bank is via his computer, online. That's right,
Malhotra is an e-bank customer. Be it account information, bill payments,
online investments or paying for online shopping, Malhotra does everything
through his virtual account. ''I work odd hours, and banking online allows
me do manage my account whenever I have the time,'' says Malhotra.