Question- How does e-banking work?

Ans.

Working of E-banking

E-banking transactions involve three parties - the bank, the consumer and a merchant. In some cases, only the bank and the consumer participate. The consumer initiates the transaction by either submitting the request online, going to a store or visiting an ATM. The bank receives the request and either approves or rejects the electronic transfer of funds based on the data provided in the request (card number, address, routing number or account number) and the available funds. After processing is complete, the funds electronically transfer to or from the consumer's account to reach the intended recipient.

E-banking is a borderless entity permitting anytime, anywhere and anyhow banking. This facilitates with all the functions and many advantages as compared to traditional banking services. During this step of the process, controls that could mitigate or eliminate the identified risks, as appropriate to the organization's operations, are provided. The goal of the recommended controls is to reduce the level of risk to the IT system and its data to an acceptable level.

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