We are now aware of the nature of banking business. Banking is practically a service- oriented activity. One of the methods of providing service is through the medium of com­puter network. Net or Internet Banking refers to extension of banking services through the network of computers.

‘Internet’ is a worldwide network of computers connected with telephone lines. Under the internet facility, millions of computers located at banks, offices, hospitals, educational institutions, commercial establishments at different countries are connected through one another.

If you have a Personal Computer (PC), telephone connec­tion and an instrument called ‘modem’, with the internet facility you can have access to various colleges and universities and offices and obtain important information, send and receive messages, etc.

Similarly, banking messages can be exchanged between the bank and its customers through the net banking system.


Hence in the internet banking a cus­tomer can ask for his / her bank balance, give other instructions pertaining to his account, call for his/her statement of account, transfer money from his/her account, pay college fees, call for cheque book and a number of similar functions through net banking without visiting the bank.

This system of conducting banking business is known as net or internet banking. ICICI Bank is presently conducting net banking. Other banks are slowly intro­ducing this system in their organisations.