Question

E-banking is a blanket term used to indicate a process through which a customer is allowed to conduct personal or commercial banking transactions using electronic and telecommunication networks. You know that in the digital era, money is defined as aselectronic pulses at the speed of light, thanks to the electronic funds transfer technology of e-commerce. Even the government departments and regulatory authorities are increasingly moving in this direction whereby they allow electronic filing of returns and reports.

1. Identify and briefly explain any three benefits of e-banking highlighted in the above paragraph. (3)
2. Identify the following in e-banking transactions: (2)
   1. A card that allows the holder to spend money without any balance in his deposit account.
   2. A machine used to withdraw or deposit money at our convenience.
3. Name any two forms of electronic banking. (1)
4. Enumerate any two facilities provided by CBS (Centralised Banking Solution). (2)

Answer 1

1. Three benefits of e-banking:
   1. Convenience: E-banking allows customers to conduct transactions from anywhere, without visiting the bank.
   2. Speed: Transactions happen at the speed of light, thanks to electronic funds transfer.
   3. Government and Regulatory Use: E-banking enables electronic filing of returns and reports, helping government departments work more efficiently.
2. 1. Credit Card
   2. ATM (Automated Teller Machine)
3. Two forms of e-banking:
   CBS, Mobile banking, SMS alerts, Credit cards, Debit cards, ATMs, EFT, POS
4. Two facilities provided by CBS:
   1. Access to account from any CBS-enabled branch.
   2. Real-time transactions across multiple branches of the same bank.