Answer: Net Banking Transfer.
Net Banking is derived from the term ‘Internet banking’.
- It is also known as e‐banking or online banking.
- It is an electronic facility of transferring funds through the internet. It allows customers to conduct financial transactions on a secure website. With bank‐to‐bank transfers, a customer can easily transfer money between his accounts and other financial institutions.
- Funds are transferred through an exchange of electronic signals between financial institutions, rather than an exchange of cash, cheque or other instruments.
- When a customer wants to make a purchase online, he is required to transfer the agreed amount to the online vendor’s account.
- After the payment is received by the seller, the seller dispatches the goods to the buyer.
Uses of Net Banking Transfer:
- Net banking transfer can be used for the following purposes:
- To make online payments for purchases made on a website; where the money is transferred from buyer’s account to seller’s account electronically.
- Instruct the bank to automatically pay certain monthly bills from the account, such as auto loan, electricity bills, telephone bills, etc.
- Conduct the transfer of funds each month from current account to the mutual fund account.
- Nowadays, in India, the tax refund is deposited directly into the customer’s account through net banking.
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