Real time banking refers to the instantaneous transactions (both deposit and withdrawals) taking place online or through electronic means. It is a modern way of conducting banking transactions and has got great popularity in almost every developing as well as developed nation. For real time banking accounting of transactions is very important.
Real time banking transactions do not need physical platforms and can be accessed 24* 365. It facilitates the user with instant money exchanges between persons and entities. The users are highly benefitted in terms of cost and time as it can be accessed anywhere with proper internet connectivity. In fact, the bankers highly recommend the real time banking than those conducted physically as it is easier for them to concentrate on the core and most important functions rather than spending time for the basic transactions of banks. Today, the bankers are even ready to educate the people how to use the online banking resources smoothly and wisely. Real time accounting reflects in the banking is necessary for control purpose.
Different Types Of Real Time Banking
There are different types of real time banking such as the net banking and mobile banking. Internet banking is the type of banking facility offered by the banks, where there is a requirement of customer id and password for the purpose of logging in and mobile banking refers to the real time banking way to conduct the transactions using mobile phones. The advantages of real time banking is necessary to give customers the transactions accounted in the system.
Real time banking can also be classified on the basis of thresh hold limits of transactions. It includes national electronic fund transfer, real time gross settlement and over the counter transactions. The national electronic fund transfer (neft) allows the user to transact with amounts within rupees one lakh. The real time gross settlement (rtgs) allows the user to transfer sum above one lakh rupees. The correct transactions are usually undertaken by the businessmen, but involves comparatively higher time consumption in the completion of transfer process than the neft transactions as it involves lesser sum of money.
Real Time Banking In Business
Modern banking system demands real time banking for control and giving good services to customers. The mindset of people has changed and the people even from the remote areas are dependent on the real time banking, especially the mobile banking. The system of demand drafts, checks, deposit and withdrawal slips have gone out dated, to a large extend, as people don’t have and never wish to spare their time in banks waiting in queues for getting their transactions done, except for some being the nature of transactions which requires higher level of authenticity and never wants anything to go wrong while processing the banking transaction. Accounting training is very important for the real time banking.
As the time passed, people uses the debit card mostly to swipe out payments to the service providers, whereas, till the end of previous decades, the debit or credit cards are merely used to withdraw and deposit sum of money from the atm counters and into cash deposit machines respectively. Such transactions brings out paperless economy.
There is a need to explore the enlarges scope of transactions done easily and with remarkable accuracy, in the under developed countries too, in order to ensure speedy development to such nations. Therefore, we can interpret that the speed by which the money supply is being occurred through the massive usage of real time banking has brought up the nations to another level in terms of development and standard of living of people of such nations. The real time banking platforms do not restrict the transactions nation wise, hence the international transfer of money is taking place between the nations very quickly and accurately. After all, the users credentials are always given prime importance and is being secured strongly, to avoid the leakage of sensitive data such as the account number, pin and card verification value of the user. The transactions will be encrypted and protected widely with the onetime [passwords.
Even though the bankers who provide the online platforms, ensures total protection from being exploited, there are some direction given by them to ensure that no man’s money gets leaked or misused, while the transfer process is being carried out through the virtual platforms. One such precautionary measure is to change the pin of the customer debit or credit card during regular intervals (monthly, quarterly or half yearly, as prescribed). Another such measure is to block the cards within the minute we receive messagein our system that our account has been exchanged sum without our authorization.
The high security measures undertaken by the bankers indicate that there has been cases where real time banking got too much messy and spoilt the life time savings of people, but has not yet recovered.
Risks In Real Time Banking
There has been cases were the online platforms witnessed money laundering cases. The bankers thus has to watch out as blood hounds for protecting their customers fame and money. Hence, there is a huge risk factor associated with the real time banking.
In today’s world, as the development gets better and stronger, same is the case of cybercrimes, increasing with high altitude of crimes. There has been the advent of several new statutes within and outside the border of nations, to prevent and eliminate cyber crimes such as the information technology act 2000, the money laundering statutes and so on. The criminals will be penalized with fine and imprisonment in severe cases. The international forums has got greater visions on the suits filed in the international level and will be punished in the international courts of law.
Not only the accounts with large sum is hacked, but also, the accounts with lower amount is hacked without getting caught or noticed. Thus, it is the responsibility of the users of real time banking to be highly vigilant and cautious about their money movement and shall revise and protect the sensitive data to avoid being victims to the cybercrimes.
Real time banking hence, acts as a knife, that is, the online platforms can surely lead to paperless and instant development and can act as the spoiling agent of lives.
Advancement In Accounting of Real Time Banking
The distributed ledger system, popularly known as Block Chain technology makes the accounting of transaction real time. It records the transaction as and when occurred.
To know more about the accounting and reconciliation of real time banking transactions post dated cheques please contact info@limagcc.com or visit limagcc.com