Virtual banking and online business


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Banks play a crucial role in promoting online businesses. Even though e-shoppers have the option of cash-on-delivery, which seems to be secure and trustworthy, still there is an urge for the e-payment schemes, which can only be provided through banks. Banks act as strong and trustworthy intermediaries in the online transactions and they provide a bold opening in the online business. At present, banks have e-payment systems like Internet banking, electronic fund transfers (NEFT/RTGS), plastic money (credit card & debit card) and mobile banking. These systems provide payment to online transactions like online purchases of products, mobile recharges, hotel booking, ticket booking, etc. by considering all types of security measures. For the real working of these e-services, the need of apt infrastructures is an inevitable feature.
This paper examines the efficient utilization of mobile banking by the bank customers who have all the infrastructures for availing the same. The results showed that the majority of the sample customers selected for the study owned a mobile but only few of them use a mobile as their mode of access to banks. They also revealed that the people were comparatively well aware of mobile banking, but its usage level was very low. The mostly used e-settlement with mobile banking was for mobile top-up by urban area customers and rural area customers and there was no significant difference between the urban area and rural area customers regarding the utilization of mobile banking.

Keywords: virtual banking, mobile banking, online business, inter-bank mobile payment system (IMPS).
JEL Classification: L86, L81

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  • References
  • Tables
  • Figures
    • Fig. 1. Number of sample customers of urban area and rural area on utilization of mobile banking
    • Table 1. Transactions through mobile banking
    • Table 2. Distribution of the sample customers by their technological utilization
    • Table 3. Awareness status of mobile banking
    • Table 4. Usage status of mobile banking
    • Table 5. Efficiency status of mobile banking
    • Table 6. Extent of utilization of mobile banking on customers of urban area and rural area