Sunday, September 24, 2017
facebook

google plus
FLASH
  • Two soldiers injured as Pakistan opens fire at forward posts along LoC in Poonch district of J-K: Army


Dos and don’ts  of digital banking

Dos and don’ts of digital banking

18 Sep 2017 | 12:35 AM

Digital banking has transformed the way individuals and businesses in India are making payments or carrying out transactions, and managing their finances. Since demonetisation last November, digital transactions have increased by more than 50% — setting the country on course to a less-cash economy and within reach of the government’s target of 25 billion digital transactions in 2017-18.

[ + read story ]

Anand Aras

Digital banking has transformed the way individuals and businesses in India are making payments or carrying out transactions, and managing their finances. Since demonetisation last November, digital transactions have increased by more than 50% — setting the country on course to a less-cash economy and within reach of the government’s target of 25 billion digital transactions in 2017-18.

Digital payments or transactions involve both credit and debit cards; unstructured supplementary service data (USSD), a two-way communication between a mobile phone and an application programme; pre-paid payment instruments (PPIs) such as e-wallets; internet or online banking; and BHIM app (Bharat Interface for Money), based on the unified payments interface (UPI) that enables instant fund transfer between any two bank accounts via a mobile platform.

Digital and internet banking are becoming increasingly common because of financial literacy initiatives taken by the Government of India along with the Reserve Bank of India, public and private sector banks, and financial technology (fintech) companies. The series of measures towards financial inclusion include the delivery of secure and seamless financial services at affordable costs to unbanked and under-banked people, and superior customer service.

Today, more people living in semi-urban and rural areas are a part of the banking and financial system than at any time since Independence.

The digital payments infrastructure is facilitating the direct transfer of subsidies and other funds to over 35 crore Aadhaar-linked savings accounts, annually — leveraging the power of JAM (Jan Dhan-Aadhaar-Mobile). But that’s only one side of the digital banking story.

The shift from traditional to digital banking has also given rise to a host of challenges, including data thefts and cyber attacks such as ransomware — a malicious software which steals a person’s confidential data and blocks access to his or her account unless a ransom is paid.

While banks and fintechs are taking all precautions to ensure cybersecurity, it’s always advisable to know the dos and don’ts of digital and online banking. Here are some of the important ones you should bear in mind:

  • Use a power-on/access password for your computer, laptop and mobile as well as a screensaver password so that no one else can access your systems without consent. Change your passwords and security settings regularly.
  • Always visit your bank’s secure Internet Banking site directly. Avoid accessing the site through a third-party link or via email. Verify the domain name before you try to log in.
  • Log out of your Internet Banking account the minute you complete transactions. Do not close the window without logging off.
  • Avoid using Internet Banking on unsecured WI-FI networks such as railway stations, airports and cybercafés.
  • Install authentic security programmes to guard your system and account against hackers, virus attacks and other malware. Update the security programme or antivirus regularly.
  • Install a suitable firewall to protect your computer or laptop and its contents. Never provide remote access to your system to anyone; not even family members, as it is still vulnerable to hacking.
  • Disable the ‘File and Printing Sharing’ command on the operating system.
  • Always log off your PC or laptop when not in use; don’t keep it lying around or trust a stranger with it.

While those are the basics of using digital or internet banking on your PC or laptop, you also need to be careful while using a mobile app for banking transactions. Here are a few useful tips:

  • Never save your mobile banking log-in and password on the phone. Either memorise it or write it down somewhere else.
  • Never leave your handset unattended and logged into a mobile banking app.
  • Always lock your phone to prevent unauthorised use.
  • Notify your bank as soon as your mobile is lost or stolen.
  • Update the mobile banking app as and when a new version/upgrade is released. Also update your phone with latest security patches.
  • Never download apps from untrustworthy and dubious sources.
  • Always log out of your banking app after using it.
  • Keep an eye on your account balance and transaction history regularly.

If you suspect unauthorised transactions on your account, report it to your bank immediately or at least within three working days, so that your complaint/grievance is addressed in your favour. Any delay can leave you with a liability or financially poorer. 

As the banking sector moves deeper into the digital era where banks provide 24x7 technologically advanced products, the customers must exercise greater caution to avoid digital and net banking fraud. It is up to individual customers to ensure the safety and security of their payment systems and enjoy the ease and convenience of digital banking.

The writer is CEO, Banking Codes and Standards Board of India. The views expressed in this article are his own

Equity-linked schemes: Start early to save tax, create wealth

Equity-linked schemes: Start early to save tax, create wealth

18 Sep 2017 | 12:37 AM

We humans are masters of procrastination and victims of inertia. What would logically make sense “now” is comfortably pushed to the back burner. Take the case of tax planning – almost always a year-end mad rush to invest; and almost always in fixed income tax-saving instruments. Why do we not start early and invest as per our risk-return profile when we have a vast investment universe to choose from? These schemes help not only save tax but also create wealth over a long term. But start early.

tax advice

No deduction on gift to daughter

18 Sep 2017 | 12:37 AM

Q. I am a senior citizen and a retired government employee of Punjab Government with my pension income above tax exemption slab of Rs 2,50,000 for the current financial year besides income from other sources such as interest on my fixed deposits in nationalised bank.

tax advice

Leave pay exempt only for govt staff

11 Sep 2017 | 12:32 AM

Q. I retired from a bank as an AGM in November 2016 and received Rs 9,66,913 as leave encashment which were accumulated during my whole service in the bank for 36 years. An amount equal to 30% as TDS was deducted from my leave encashment amount above Rs 3 lakh which comes to nearly Rs 1.90 lakh.

Financial health check for doctors, money management

Financial health check for doctors, money management

11 Sep 2017 | 12:31 AM

Are doctors different? Do they require some specific kind of financial planning? These are the first few questions that were asked to me while I was addressing a group of doctors on different money issues.

Why equity should  be your preferred investment choice

Why equity should be your preferred investment choice

11 Sep 2017 | 12:31 AM

Economics defines investment as purchase of goods which will help create wealth in future.

Tax Advice

PO interest up to Rs 3,500 exempt

04 Sep 2017 | 12:31 AM

Q. I want a clarification about the exemption of Rs 3,500 interest on Post Office savings bank account from the income-tax as I understand Rs 10,000 interest is exempt from income-tax from bank’s savings bank account under Section 80TTA.

Three things to watch out while filling MF application form

Three things to watch out while filling MF application form

04 Sep 2017 | 12:31 AM

FOR many investors, especially those who are investing for the first time, filling a mutual fund application may look daunting. However, it’s vital that it’s done properly and checked so that important details are captured correctly. This is all the more important if the form is being filled out physically.

Mutual funds best bet for millennials

Mutual funds best bet for millennials

04 Sep 2017 | 12:31 AM

AS the saying goes, ‘the early bird catches the worm,’ — the same holds true for investment earnings also. The earlier you start the better are the chances of creating large financial wealth, as you get more return for more time on your investments.

No tax on gratuity received on retirement

28 Aug 2017 | 12:37 AM

Q. My father retired from service six years ago. He got leave encashment, gratuity and other benefits from government amounting to Rs 30 lakh to his credit. My query is whether he can withdraw money for below-mentioned purposes:

Stay safe from  digital threats

Stay safe from digital threats

28 Aug 2017 | 12:36 AM

The world, especially in financial services, has been talking of fraud for quite a while now. Banks and other entities communicate with customers to educate and warn them of threats with the aim to mitigate fraud. The entire world was once again awakened to the reality of the threats to its digital world when the ransomware attack by the name of Wannacry (aka WannaDecryptor and WannaCryptor 2.0) hit around 150 countries with one of the most malicious cyber attacks in recent times. Taking advantage of vulnerability in Microsoft Windows, it affected more than 200,000 machines, demanding 300 bitcoins from each user to give back access of his/her machine and data.

Why financial literacy is more critical now

Why financial literacy is more critical now

28 Aug 2017 | 12:35 AM

I wouldn’t have been writing this piece, if the calendar on my desk showed a date from a decade and a half back.

Grant against working capital  is taxable

Grant against working capital is taxable

21 Aug 2017 | 2:43 AM

Q. I had set up a unit in rural area and received a subsidy of Rs 5 lakh under Prime Minister Employment Generation Programme.

Life insurance: Key to protection and legacy

Life insurance: Key to protection and legacy

21 Aug 2017 | 12:46 AM

India as a country is extremely emotional and family oriented.

Drive smart with Telematics

Drive smart with Telematics

21 Aug 2017 | 12:46 AM

With technology fuelling a lot of changes around us, we are now witnessing motor insurance covers that not only pay for our claims, but also assist us to improve our driving behaviour.

Decrypting your home loan eligibility

14 Aug 2017 | 12:28 AM

Home is where the heart is. Though owning a home may mean different things to different individuals, one thing is common —we all want to own a home.

tax advice

Exports to Nepal: Refund of IGST permissible

14 Aug 2017 | 12:28 AM

I have an issue related to export of goods to Nepal. We purchase goods from Delhi and sell in India as well as in Nepal. Earlier when GST was not implemented, there was no VAT/other tax applicable when we used to sell our goods to Nepal.

Insure your assets against natural calamities

Insure your assets against natural calamities

14 Aug 2017 | 12:27 AM

PROPERTY:Climate change is not merely a much talked about subject anymore.

Tips for becoming a co-applicant in home loan

Tips for becoming a co-applicant in home loan

07 Aug 2017 | 1:22 AM

A home is the most popular, and will be the most enduring of all earthly establishments, said the late great American magician, Channing Pollock, about his abode.

Invest in NHAI bonds  to save capital gain taxTax advice sc vasudeva

Invest in NHAI bonds to save capital gain tax

07 Aug 2017 | 1:22 AM

My father-in-law retired from Indian Railways in 1978 and settled at Darapur village which is in close proximity to Tanda town, a sub-tehsil of Hoshiarpur district.

Thumb rules for investment

Thumb rules for investment

07 Aug 2017 | 1:22 AM

Every individual is unique and has different financial goals, risk-taking appetite and attitude towards saving/investment.

Filing for motor insurance claim? Think twice

Filing for motor insurance claim? Think twice

31 Jul 2017 | 12:22 AM

People buy motor insurance mainly for two reasons — first and foremost, to protect their vehicle against any damage caused by an accident and secondly, because it is mandatory by law.

Life insurance: No tax on survival benefittax advice

Life insurance: No tax on survival benefit

31 Jul 2017 | 12:22 AM

Q. I am a senior citizen and Punjab Government pensioner (aged 81 years). I got a life insurance policy for my son (aged 45 years) in 2013 with annual premium of Rs 50,000 for 10 years, with maturity value of Rs 38,000 payable in three instalments at 4, 7 and 10 years as survival benefits.

GST:  Paradigm shift in  indirect taxation regime

GST: Paradigm shift in indirect taxation regime

31 Jul 2017 | 12:22 AM

EFFICIENT:The GST Bill underwent a long gestation period, having been first initiated in 2000 by the Vajpayee government.

One fine day...

One fine day...

24 Sep 2017 | 12:32 AM
Man of the moment

Man of the moment

24 Sep 2017 | 12:32 AM

Honouring the brave

24 Sep 2017 | 12:32 AM
The Year Ahead

The Year Ahead

24 Sep 2017 | 12:32 AM
more Life+Style...
  • SpectrumComing home via Bollywood

    Coming home via Bollywood

    A highly qualified doctor settled in Detroit talks nineteen to dozen about Hindi films, can’t get over the Shah Rukh Khan show she attended a few years ago.

  • The girl who slayed slavery

    A visit to Kenwood House, Hampstead Heath, London, engagingly unfolds the history of William Murray, 1st Earl of Mansfield (March 2, 1705 – March 20, 1793) and the extraordinary story of his nephew’s daughter, a black girl of mixed race, named Dido Belle.

  • Of stolen riches and ‘confusing’ Asian names

    When you have a name that perhaps sounds a little different – unusual, perhaps — some might ask: “How is that pronounced?”, comment: “Oh, that’s lovely”, or even: “What does your name mean? What are the origins?” As someone with one of those names — Shazia Awan — I’ve taken it in my stride while growing up in Wales, just as my sisters did too.

more Spectrum...
Chemistry of successchemical engineering

Chemistry of success

20 Sep 2017 | 12:21 AM
The golden ticket

The golden ticket

20 Sep 2017 | 12:21 AM
Scope after learning SpanishCareer Hotline

Scope after learning Spanish

20 Sep 2017 | 12:21 AM

Scholarship Roundup

20 Sep 2017 | 12:21 AM
more Jobs & Careers...