It’s been decades since a large part of the Indian population has been using netbanking or the online banking system. Be it digitally accepting money from one bank account to another, or applying for a home loan, netbanking has made our lives really convenient.
Netbanking has become such an important part of our lives that we don’t even think twice before using one of the many netbanking facilities.
Netbanking was first introduced in the UK in 1983. A year later, US banks also rolled out netbanking for their users. In 1998, ICICI Bank became the first Indian bank to offer netbanking services in the country.
However, the netbanking services then were not as evolved as they are now. In the late 90s and early 2000s, most of the netbanking facilities were limited to banks having their websites with little to no interactivity features. It was only in the 2010s that netbanking facilities evolved leading up to the online transfer of money and many other facets.
Benefits of online banking
Individuals and businesses use netbanking to carry out numerous bank-related functions without visiting their bank branch.
In its current avatar, netbanking has following use-cases:
- Electronic money transfer
- Checking account balance
- Online bill payment
- Online KYC
- Open fixed deposit or recurring accounts
- Apply for different types of loans
Read more: Increase Cash Flow by Accepting Payments Using Credit Cards
One of the most important functions of netbanking is electronically transferring money from one bank account to another. This is the most important pillar on which any online business works. Thus, it’s important that businesses are prepared to accept money online by partnering with the right payment gateway that can process such transactions in a quick and efficient manner.
Types of online transactions via netbanking
There are numerous financial rails on which online transactions happen in India. The Reserve Bank of India and National Payments Corporation of India have created these payment modes keeping in mind different needs of the merchants and customers.
These are the five payment modes that use netbanking:
- Debit and credit cards: There are over 985.35 million debit and credit cards in the country. Of these 920 million are debit cards and 65.02 million are credit cards. They are extensively used to make online payments, making it necessary for businesses to accept all types of cards to accept payments.
- RTGS: Launched in March 2004, RTGS or Real-Time Gross Settlement is the oldest payments mode in India. It’s critical for businesses that deal with high-value products as there is no limit on RTGS funds transfer.
- NEFT: National Electronics Funds Transfer (NEFT) is a centralised payment system started and operated by RBI. NEFT is available throughout the year and works even during non-banking hours.
- IMPS: Immediate Payment System was created by NPCI to facilitate low-value transactions, which are largely used for retail consumers.
Accept netbanking payments via Paytm Payment Gateway
While in recent times, UPI has taken the online payments industry by storm, netbanking is not going anywhere and will continue to be one of the main payments modes.
Considering that there is always going to be a demand for payments through netbanking, online businesses – new and old – should make all possible efforts to ensure their customers can shop via netbanking.
Paytm Payment Gateway helps online businesses to accept payments through netbanking. Not only that, we make the checkout process easy so that customers don’t abandon their carts.
Since millions of users have their cards saved with us it doesn’t require them to enter their card details again to make payments. This substantially reduces the chances of payment failure.
Choose Paytm Payment Gateway today to start accepting payments from customers who choose to pay through netbanking.
