Net Banking – What are its Advantages, Disadvantages, Features and More

byPriyanka JuyalLast Updated: July 17, 2023
What is Net Banking?

Net banking is an easy, fast, and secure way to access all your banking services online. Many banks have embraced digitalization and now offer online banking, which allows you to complete all your banking transactions from the comfort of your own home. With online banking, there’s no need to visit the bank in person, saving you time and effort. Net banking offers a wide range of features and benefits, including the ability to manage your accounts, pay bills, transfer money, and more, all from your computer or mobile device.

 In this article, we’ll provide a comprehensive overview of net banking, including its features, benefits, and services.

What is Net Banking?

Net banking, also known as internet banking, is a service offered by banks that allows customers to access various banking services and perform financial transactions online. With net banking, customers can complete a range of banking tasks, including money transfers, creating fixed deposits and recurring deposits, and tracking transactions, without the need to visit a physical bank branch. 

Any individual with an active bank account can use net banking, provided they have registered for the service. Once registered, they can use the online banking services offered by their bank.

What are the Features of Net Banking?

The following are some of the features of net banking that make this electronic system so popular:

  • Net banking allows convenient access to a variety of banking services
  • Customers can easily check account balances and transaction history
  • Online bill payments and fund transfers are simple and efficient
  • Net banking provides a secure environment for conducting banking transactions
  • Customers have a unique login ID and password for their account
  • Net banking enables customers to apply for loans or insurance online
  • Customers can manage their debit/credit cards and update addresses through internet banking
  • It is easy to block a card or update primary and secondary addresses through net banking.

What are the Advantages of Net Banking?

The following are the benefits of net banking that make it an obvious choice for obtaining banking services online:

  • Net banking is available 24/7
  • It allows for easy fund transfers
  • It offers convenience for conducting banking transactions
  • Customers can easily track their transaction history with just a few clicks
  • Net banking is secure and requires a password for access
  • Non-financial activities such as ordering a cheque book, checking account balance, and obtaining a passbook can be easily done through net banking.

What are the Limitations of Net Banking?

The limitations of net banking are-

  • Net banking may be challenging for those who are new to using it
  • An internet connection is necessary to use the online banking services
  • It is important to regularly change passwords to ensure the security of the bank account and protect it from hackers (e.g. password changes may be required every two months)

How to Register for Net Banking?

If a user does not have access to a net banking facility, the steps he or she can take to obtain one are as follows:

  • To get started with internet banking, go to your bank’s branch and submit an internet banking application form along with required documents like a bank passbook and Aadhaar card
  • After the application form and documents have been submitted and verified, the bank will issue you a customer ID and password.


  • The Internet banking application form can be downloaded from the bank’s mobile application
  • The credentials provided can be used to access internet banking services

How to Register for Net Banking Online?

Following are the steps to be followed to register for net banking online:

  • Go to the bank’s official net banking website.
  • Click on the login button or the ‘New user/Register here’ link.
  • If you already have net banking credentials, enter them and log in. If you are not yet a registered member, complete the self-registration form with your account number, registered mobile number, CIF number, debit card information, and other required information.
  • To authenticate the process, enter the OTP that was sent to your registered mobile number.
  • Use your temporary customer identification number and password to log in.
  • Once logged in, you can create a more secure password for future use.

Also Read: How to Activate Net Banking easily?

Bottom line

Net banking is a convenient way for customers to access their bank accounts and perform various banking tasks online, without the need to visit a physical bank branch. However, it is important to remember that net banking can only be accessed through the internet, and it is advisable to regularly change your security password to protect your account from cyber threats. Additionally, it is essential to keep your net banking login information private, as sharing it with others could put your account at risk of being hacked.

Also Read: Difference Between Net Banking and Mobile Banking


Can I change my net banking account password online?

To change your online banking password, you can visit your profile or account settings on the website or app and follow the prompts to update your password.

How do I begin using my net banking account?

To access net banking services, you will need to log in to the bank’s website using your login credentials. Once you have successfully logged in, you will be able to use the various online banking features and services offered by the bank.

What should I keep in mind when using internet banking?

There are several precautions that users should take when using online banking to ensure the security of their accounts and personal information. These may include avoiding using public Wi-Fi or shared computers, keeping their login credentials private, regularly updating their passwords, and being vigilant against phishing attacks or other forms of cybercrime. It is important to follow best practices for online security to protect yourself and your accounts.

How do I obtain a net banking customer ID?

Your customer ID for online banking is typically provided by your bank when you open an account with them. If you do not have a customer ID, you can contact your bank and request one. They should be able to provide you with the necessary information and instructions on how to access and use their online banking services.

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