We are living in a digital world where everything, right from our groceries to paying utility bills to finding a plumber to ordering food, can be done using your smartphone or the internet. And for all this, you require a decent bandwidth. Banking, too, is not a stranger to the online world. Today you can open and access your savings account, send/receive money instantly, keep track of your transactions, get bank statements, alerts, etc. in a matter of minutes.
Indians are spoilt for choices when it comes to digitalisation, right from digital wallets like Paytm to mobile banking to net banking. You can use any of these methods and enjoy the benefits mentioned above. So, which one should you opt for?
What is internet banking?
It is a medium where you can conduct all your traditional banking services online. No more long queues and no lengthy paperwork. Several banks have their mobile banking apps to alert you about your finances on the move as well. Internet banking also offers you 3 additional internet fund transfer services to make your life simple and hassle-free:
- National Electronic Funds Transfer (NEFT)
- Real-Time Gross System (RTGS)
- Immediate Payment Services (IMPS)
What are digital wallets?
Also known as an e-wallet, is where you can save your funds securely without using your bank details such as debit or credit cards. It is the fastest mode of transaction and does not require you to maintain a minimum balance, unlike the savings account. You can purchase anything from a grocery store to buying air tickets using an e-wallet app. For these apps, you will have to create your account. You can also set a secret PIN to disallow any fraudulent activities. You can then use the internet banking facility to move funds from one account to the other.
Some of the other features of an e-wallet and net banking are:
- Transaction limit: When you use a digital wallet, you are allowed to transfer an amount only up to INR 20,000 as per RBI directives. However, through internet banking, you can move an amount as much as INR 10 lakh using NEFT/RTGS/IMPS method.
- Usage fees: Digital wallets do not charge for using their services. However, bank withdrawal fees are a part of the app. On the other hand, internet banking does not charge for any such services unless you are transferring high-value funds.
- Rewards: One of the biggest benefits of e-wallets is that you get n number of deals and cashback offers. Some of the banks are connected with these digital wallets. So, you can avail of credit/debit card rewards through them.
- Usability: If you have a decent WiFi connection, both the digital app and net banking can be used easily online. The good thing about these mediums is that you can access these at home or workplace.
