Which of the following is an example of E-Banking transaction?
- AOption (a)
Depositing cash at the bank counter
- BOption (b)
Transferring money using mobile banking
- COption (c)
Filling a demand draft form
- DOption (d)
Standing in queue for passbook update
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Correct answer
Transferring money using mobile banking
Why this answer is correct
Concept
- E-Banking, also known as Electronic Banking or Online Banking, is a service provided by banks that allows customers to perform financial transactions electronically over the internet.
- It eliminates the need for customers to visit a physical bank branch for most of their basic banking needs.
- Common E-Banking services include Mobile Banking, Internet Banking, ATM services, and electronic fund transfers like NEFT, RTGS, and IMPS.
Explanation
Banking activities can be broadly classified into Traditional Banking and E-Banking:
- Traditional Banking: This involves physical presence and manual paperwork. Examples include depositing cash at a bank counter, filling out a physical form for a Demand Draft (DD), and waiting in a queue to update a physical passbook.
- E-Banking: This involves using digital devices and telecommunications. Mobile Banking allows a user to transfer funds, check balances, and pay bills instantly using a smartphone application.
Since mobile banking utilizes an electronic platform to execute a financial transaction without physical human intervention at the bank, it is a primary example of E-Banking.
Hence, the correct example of an E-Banking transaction is transferring money using mobile banking.