Credit cards were introduced in Nepal in the 1990s. But, ebanking in Nepal banks started only when, in 2002 AD, Kumari Bank introduced the first online banking system in Nepal. E-banking is the process of making electronic monetary transactions, using a computer network and the internet. In other words, it is a process of buying and selling of goods and services where payment is completed online, generally over the internet. Ebanking Nepal Bank are booming day over day.
Online Banking vs E-Banking
E-banking is the process of online monetary transactions. Whereas online banking is the process of the transaction of money through web-based banking. Online banking is a part of e-banking. Other services that use e-banking includes:-
- ATMs
- Cash Withdrawal
- Balance Inquiry
- Fund Transfer is not available.
- PoS Terminals
- Financial transactions are made via Cards.
- Cash is debited from the client’s account(s).
- Cash cannot be deposited.
- Tele-Banking
- Account Status check
- Balance Inquiry
- No fund transfer facility.
- SMS-Banking
- Similar to Tele-Banking except telephone
- Cell phone is required instead of telephone.
- Online Banking / Internet Banking
- Viewing account balances, recent transactions
- Bank statements
- Funds transfers between the customer’s linked accounts
- Paying third parties, including bill payments and third party fund transfers
- Many more including non-transactional tasks and transact banking tasks
History of E-banking In Nepal
- Banking started in Nepal in 1937 by ‘Nepal Bank Limited’ (Government Sector)
- Introduction of Credit Cards in Nepal in early 1990 by NABIL Bank
- Automated Teller Machine (ATM) was first introduced by Himalayan Bank Ltd. In 1995
- Internet-Banking was first introduced by Kumari Bank Limited in 2002
- SMS-Banking was first introduced by Laxmi Bank Limited in the year 2004
Internet Banking
Internet Banking Login – E-banking in Nepal
As I said earlier, online banking is a part of e-banking. To access the online banking, a customer of the bank should log in to the bank’s online banking website. But to get access to the banking website, customers should be registered for the service; that means it is a mandatory requirement.
You can request for the online banking service facility in the bank. Banks then cross-check their database to see whether or not a customer has registered for online banking facility before giving you the credentials.They will provide your userID and userPassword with these combination you can login to your online bank. Use 2 step verification if available. Check Online Payment Gateway in Nepal.
These credentials are not like normal telephone or mobile banking. Online banking identity number is not same as account number or customer number, they link with other financial institutions for transactions. However, banks may limit the range of task of the account to be accessed through online banking.
Online Banking Security
Online banking is the way many people manage their money. To ensure the internet banking security, banks use encryption technology to transfer every information over the internet through the banking website. Furthermore, banks also set alert system to inform customers about the account activities.
Banks always try to make their customers safe and secure but while using online banking though, you also need to take precautions. Stay safe from Phishing sites and Key Logger.
Choosing Online Banking
Online banking has been the essential need these years. It is the most popular way to manage one’s money. There are many things users should keep in mind for safe internet banking. Some being:
- Research about the bank and review form other users before opening account
- Be sure you are in the official websites of banks; keep an eye on similar looking sites (phishing sites)
- Always keep your personal information safe and secure
- Never access your banks through public cyber; avoid key logger and use onscreen keyboard (if present in the bank’s site)
- If something unexpected happens, immediately inform respective banks
- Make sure your are in secure connection (Look for: https://)
- Know your rights
Future of E-banking in Nepal
According to research by Online Banking Report, by the end of 1999, less than 0.4% of households in the U.S. were using online banking. At the beginning of 2004, some 33 million U.S. households (31%) were using some form of online banking. Five years later, according to a survey by Gartner Group, 47% of Americans used online banking. Meanwhile, in the UK online banking grew from 63% to 70% of internet users between 2011 and 2012.
We have seen a slow progress in internet banking. Nevertheless, online banking has proven that it is here to stay. Features and services for easy online banking are increasing day by day. And, the smartphone penetration has increased with easy accessibility to banks and their services.
To conclude, I would say higher the use of internet banking, higher the chances are that Nepal will progress in the technological field.
Thank you! Happy Internet Banking 
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