Ashwin Kane (name changed) has two bank accounts -- a HDFC salary account and an ICICI Bank account. Since he took a home loan from ICICI Bank, he chose to have his EMI of Rs 15,000 automatically debited from his ICICI account.

The due date for paying the EMI is the first of every month. Usually, he deposits a cheque in ICICI. This time he forgot. So when he got a call from the bank, he panicked thinking he would have to pay a penalty.

As the cheque would take three working days to be cleared, he went to the nearest HDFC ATM, withdrew the amount and deposited in the ICICI account.

The exercise not only caused him a half day at work but also considerable heartburn. It could have been avoided if Kane had used HDFC's online banking facility to transfer money to ICICI and that too in seconds.

An estimated 4.6 million users transfer funds online and this number (includes mobile banking figures), according to the Internet and Mobile Association of India, is expected to increase to 16 million by 2007-08.

Sources from ICICI Bank, for instance, claim that around Rs 100 crore (Rs 1 billion) net banking transactions are conducted every month. Around 78 per cent of the bank's customer base is reportedly registered for Internet banking.

There are two ways to register for online banking: One is to call the help desk and ask for the online registration form and the second is to fill it online.

The bank will then send you an iPIN (password for online banking) mentioning what your login ID would be. Once you get started, remember to change your iPIN for security. Also, do not communicate any details of your account to any bank employee via email.

Banking online allows you to make instant payments of your electricity, telephone, gas and other bills. You can also give standing instructions to the bank to pay your recurring bills automatically.

All you need to do is complete a simple one-time registration for each biller. Besides being convenient, it's a free service. You can also check your transactions at any time of the day and as many times as you want.

Requesting the bank for a statement would not only cause to lose time but also money, around Rs 25 per page showcasing only 30 transactions. Moreover, the bank would take eight days to deliver it at your doorstep.

And if the fund transfer has to be made outstation where the bank does not have a branch, the bank would demand outstation charges. With online banking, it's free.

Online banking allows you to transfer money to your own accounts or third-party accounts, check your account status online, request for cheques, stop payments, make investments, open a fixed deposit (FD) account, apply for debit card, loan or even check your home loan status.

Credit card users can pay their credit card bills online and get a loan on their cards. They can also apply for an additional card, request a credit line increase and report lost cards online.

Some banks even give you the facility to buy mutual funds directly from the online banking system.

Leading banks generally offer both online banking and demat accounts. However, if you have your demat account with independent share brokers, then you need to sign a special form, which will link your two accounts.

And if you're a pre-paid card user, you can top-up your pre-paid mobile cards by logging on, selecting your operator's name, entering your mobile number and the amount for recharge. You can also buy railway and air tickets through Internet banking.

With so many goodies online, why aren't people doing Internet banking?

Foremost on the mind of any account holder is security concern. Second, some users prefer face-to-face banking while others do not know how to transfer money online.

Users find some website interface too complex to surf and fourth, the bank does not offer this facility.

Advertising of e-banking

• Make instant payments of your electricity, telephone, gas and other bills.
• Check your transactions at any time of the day and as many times as you want.
• Free online fund transfer to your own accounts or third-party accounts.
• Apply for an additional card, request a credit line increase.
• Report lost cards online, pay credit bills online.
• Request for cheques and stop payments.
• Top your pre-paid mobile cards by logging on. Select your operator's name, enter the mobile number and the amount for recharge.