IMPACT OF REMOTE BANKING SERVICES ON THE OPERATION OF INTERBANK PAYMENT SYSTEMS

Abstract

Banks are essential in supporting online businesses. Despite e-shoppers having the option of cash-on-delivery, which is seen as safe and reliable, there is still a demand for e-payment systems that only banks can provide. Banks serve as reliable intermediaries in online transactions and play a key role in facilitating online business ventures. Currently, banks offer e-payment services such as Internet banking, electronic fund transfers (NEFT/RTGS), credit and debit cards, and mobile banking. These services enable online transactions for activities like purchasing products, recharging mobile phones, booking hotels, and buying tickets, all while ensuring security measures are in place. For these e-services to function effectively, robust infrastructure is necessary.

This paper explores the effective use of mobile banking by bank customers who have the necessary infrastructure to access it. The findings revealed that while most customers surveyed owned a mobile phone, only a few used it for banking purposes. It was also found that although people were generally aware of mobile banking, its utilization was minimal. The most common use of mobile banking was for mobile top-ups among both urban and rural customers, with no significant difference between the two groups in terms of mobile banking usage.