Online banking in India has received an enormous boost after demonetisation, and there has been no looking back for it ever since. If you’re too busy or too tired to keep sending and receiving paper cheques, are fed up with continuous trips to the bank to make deposits or withdrawals, and are weary of working strictly around the bank’s operating hours - then you should give online banking a shot!

Because of online banking, this activity is no longer limited to strict hours, and for most things, no visits to the banks are required to get something done. Internet banking has eliminated many of the banking errands, reducing the need for visits to the bank, long queues, and long waiting times. In fact, internet banking has become so popular that the idea of ever having to go back to the offline days is wince-inducing; these days, we have almost forgotten how we ever got along without it!

The importance of online banking in today’s time

The main reason banks switched to internet banking in this modern tech-savvy world was to reduce operational costs while meeting the challenges of ever-growing competition. There are various reasons for the growth of net banking, but the most critical factor is that it reduces the need for standing in long lines. It allows customers to operate with banks in a modern way that leads to lower wastage of time and lessens inconvenience and accessibility issues.

Early success of digitisation led many banks to expand their internet presence with improved websites, which can perform tasks such as opening new accounts, allowing customers to download forms, and even processing loan applications, sometimes in a matter of minutes!

Why Should You Opt for Online Banking: PROS

Here are some of the benefits of using internet banking that you should know about:

Ease of Use

Compared to traditional bank accounts, internet banking is easier to use. Online banking is available 24x7 and 365 days, it is time-saving, and is not restricted by geography. It is also very user-friendly – online transactions cause significantly less hassle than offline ones.

Quick Transfers

The transfer of funds is super fast and safe. You can even pay your bills anytime with your virtual card, and generate automatic receipts. Internet banking provides better interest through online banking. Additionally, banks provide many offers to entice customers to shift to online banking. Moreover, payment cards help in online purchases and transactions efficiently. Internet banking acts as a medium for several other products / services, which also includes investment options.


It is quite convenient and comfortable to pay bill through mobile wallets. Customers can access their bank anytime and anywhere, giving them a faster, easier, more efficient and effective experience versus physical banking. Checking account balances and solving almost any banking-service issue is possible through online banking.

Other Benefits

Online banking systems include mobile accessibility and digital payments. Internet banking is environment-friendly as it reduces the usage of paper. The exceptional service of internet banking rendered by the banks has not only increased and benefitted customers, but has also helped in the development of these banks.

Online banking has made life easier for customers while contributing to the significant economic growth of banks! In this digital era, it could be one of technology’s greatest gifts!

What You Should Be Aware of While Banking Online: CONS

While internet banking can be a blessing to many, it might be a little difficult for first-time users who are not tech-savvy. There are also other drawbacks that make users uneasy about online banking. Some of these are listed below:


One of the biggest fear that customers have about online banking is security, and this is one of the major reasons that they do not use internet banking. The instances of cyber-crimes and hacking are increasing. In fact, the most pronounced threat to modern banking is hacking. Even with the banking sector continually working on these issues, hacking hasn't stopped. Most banks in India have introduced anti-phishing methods to protect their customers. However, loss of data and identity theft incidents keep many users wary online banking.

Transaction Issues

Most customers fear online fraud and cybercrimes. However, sometimes, due to technical glitches, money is not transferred in an online transaction. Alternatively, even if the transaction takes place, customers do not receive a status update. These instances make customers nervous.

Customer Service Assistance

Since customers are not physically approaching banks in online banking, the relationship between them and the bank could be negatively affected.  Many users still prefer having human customer assistance rather than explaining a problem to a chatbot.


Both online and direct banking have their own pros and cons. While both have their own risks, the banking sector is always trying to reduce these. A good idea would be to maintain both online and in-store banking practices and benefit from both.


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Disclaimer: This Article is for information purposes only. The views expressed in this Article do not necessarily constitute the views of Kotak Mahindra Bank Ltd. (“Bank”) or its employees. The Bank makes no warranty of any kind with respect to the completeness or accuracy of the material and articles contained in this Article. The information contained in this Article is sourced from empaneled external experts for the benefit of the customers and it does not constitute legal advice from the Bank. The Bank, its directors, employees and the contributors shall not be responsible or liable for any damage or loss resulting from or arising due to reliance on or use of any information contained herein. Tax laws are subject to amendment from time to time. The above information is for general understanding and reference. This is not legal advice or tax advice, and users are advised to consult their tax advisors before making any decision or taking any action.