International Journal of Education and Psychological Research
(Print and Online Peer Reviewed Journal)
Authors:  Nigesh K.  Saranya T. S.
Banks are an important institution of the economy for providing institutional credit to its customers. Abanking company in India is the one adding from the public, repayable on demand or otherwise and withdrawal by cheques, draft, order or otherwise. In simple terms, a bank accepts money on deposits, repayable on demand and also earns a margin of profit by lending money. A bank stimulates economic activity in the market by dealing in money. It mobilises the savings of people and makes funds available to business financing their capital and revenue expenditure. It also deals in financial instruments and provides financial services for a price i.e, interest, discount, commission, etc The growth of internet and e-commerce is dramatically changing in everyday life, with the world wide web and e-commerce transforming the world into a digital global village. The latest wave in information technology is internet banking. It is a part of virtual banking and another delivery channel for customers. In simple terms, internet banking means any user with a PC and a browser can get connected to the banks website to perform any of the virtual banking functions and avail of any of the bankâ€™s services. There is no human operator to respond to the needs of the customer. The bank has a centralised data base that is web-enabled. All the services that the bank has permitted on the internet are displayed on a menu. Any service can be selected and further interaction is dictated by the nature of service. The range of services offered by e-banking are: Electronic Funds Transfer (EFT0: Automated Teller Machines (ATM) and point of sales (PoS), Electronic Data Interchange (EDI) and Credit Electronic or Digital cash. What is addressed generally with regard to E-Commerce under the title of safety of communication and data protection is a specific problem of banking law since bank secrecy is one of the most crucial and important problems of bank business. This is more or less true for all countries. Therefore, the question arises how the requirements of protecting of bank secrecy can be complied with in electronic transactions.