Net banking or banking online has always been used for making banking transactions. But instead of being a digital luxury, it must be seen as a financial necessity to use internet banking. Net banking can be very useful to manage your account seamlessly.
Here are 8 reasons why you should use Net banking
1. Digital Payments
India is steadily transitioning into a digital economy, when the exchange of currency happens through digital modes rather than physically. One can make payments to different vendors, merchants, suppliers, businesses etc. through various digital modes such as net banking.
Not only is this much more convenient, it is also safer than carrying wads of cash around.
- You can make direct payments through your bank accounts by using Net banking. As a business, you can make your GST payments via net banking. Use of Google Pay, UPI also is done by linking your bank account to these mediums and making payments through them.
2. Control Over Account Transactions
Net banking portals facilitate easier access to your account. Most banks provide the facility to view your mini statement (last ten transactions or previous one-month transactions), historical statement, FD interest statement, TDS deduction details etc. through their website.
You can also view different transactions getting debited from or credited to the bank account. Hence any suspicious or unauthorized activity can be immediately detected. Further, you can also request for DD (Demand Drafts) and cheque books through net banking.
3. Online Money Transfers
Money transfer through cheques is steadily reducing as online money transfer happens quickly and efficiently. One can use National Electronic Funds Transfer (NEFT) or Real Time Gross Settlement (RTGS), and enjoy the convenience of making money transfers online.
- Also, with effect from 16th December 2019, NEFT has been made operational 24X7 by the Reserve Bank of India (RBI) and thus allowing you access to net banking through NEFT transactions round the clock.
4. Setting Automatic Bill Payments
Most banks provide the facility of bill payments through their net banking portals. Under this facility, the account holder must submit the required details for the biller being registered e.g. mobile number and relationship number for registering postpaid mobile bill etc.
- Such bills raised by registered billers are visible in the ‘Bill Pay’ section of the net banking portal, and one can also pay the bill directly from there.
- Most portals also allow you to set up a standing instruction to pay such bills automatically from the bank account i.e., auto-debit.
5. Making Investments Online, Including SIP Registration
You can open a fixed deposit online directly through the net banking portal, and some banks also allow you to make a premature withdrawal through net banking for fixed deposits created online.
Further, just like internet banking enables you to make different payments online, this facility can also be used to make investments with a click of the mouse.
- You can also start a Systematic Investment Plan (SIP) in mutual funds and add a mutual fund house as the biller to enable SIP payments. Such bill payments can also be scheduled to be paid automatically and hence; one can make regular and consistent savings.
6. Pay Taxes Through Income Tax India E-filing account
The Income Tax Department has collaborated with several banks to enable access to the taxpayer’s e-filing account directly from the net banking portal. This facility especially comes in handy when one does not remember the password to the e-filing account and wants to regain access.
- Further, when you log into the e-filing account through net banking, you can also e-verify the Income Tax Return (ITR) online with a click, and there is no further need to physically send the signed copy of such ITR to the Income Tax Department Central Processing Centre (ITD-CPC).
7. Applying for IPOs
Several banks have enabled a transaction interface within their internet banking portals to allow their customers to apply for IPOs online. SEBI has also discontinued the manual application mode for applying for an IPO.
Having access to internet banking can allow the account holders to make an IPO application and aim to generate gains from stock investment for long term wealth creation.
8. Enabling Access to Personal Loans
Most new-age fintech startups, like Money View Loans, mandatorily require their customers to have a net banking account before applying for a personal loan online. Having a net banking account enables the customers to set up standing instructions for loan repayments. Thus, your access to net banking may help regulate your access to the credit.
- Net Banking has revolutionized the financial industry completely. Not only is having access to net banking convenient for many reasons, it has also become imperative for most payments.
These were 8 reasons why net banking is so important today. We do hope that you have enabled it for your bank account due to the various conveniences and benefits that it offers.