Online Banking FAQs | Pioneer Bank (2024)

FAQs

What are the don'ts for online bank transactions? ›

Don't let any unauthorized person have access to your computer or leave the computer unattended while using Internet Banking Services. 3. Don't disclose/reveal your personal or confidential information to anyone over email/SMS/phone call.

The biggest risk of online banks is that someone will access your savings or checking account and steal your information and money. This typically happens when your account is hacked by cybercriminals who get your username and password. However, these risks are not limited to banks that operate exclusively online.

Online banking does have some potential disadvantages. These include a lack of face-to-face customer support, cash deposit services and a risk of technology failures or security breaches.

UPI new guidelines

As per the new rule, an interchange fee of up to 1.1% on UPI transactions above Rs.2,000 made through PPIs, applicable from 2024.

Limited deposit and withdrawal options

Many online banks offer a limited number of deposit-taking ATMs, but if you don't have one of these nearby, you might be out of luck. That's why some people choose to maintain checking accounts at brick-and-mortar banks -- they can transfer cash to these easily.

Security and fraud instances: This is one of the most significant challenges for banks promoting online banking.

Previous negative experiences - people who have had previous negative experiences, having suffered, for example, from bank fraud or financial loss in the digital environment, may develop greater fear and distrust. Higher risk perception - people may perceive digital money as riskier than physical money.

Cons of online banks

Customer service can be virtual and impersonal. You are more likely to incur ATM fees if the online bank has no ATM network or is part of a small network. You can't deposit cash unless the bank is linked to ATMs that accept cash. The number of products tends to be more limited at online banks.

What is not possible in online banks? ›

Traditional banks sometimes offer special services to loyal customers, such as preferred rates and investment advice at no extra charge. In addition, routine services such as notarization and bank signature guarantee are not available online. These services are required for many financial and legal transactions.

Due to the open nature of the Internet, all web-based services such as YAB's Online Banking are inherently subject to risks such as online theft of your User ID/UserName, Password, virus attacks, hacking, unauthorized access and fraudulent transactions.

If they're FDIC-insured, online banks are as safe as traditional brick-and-mortar banks in many ways. You can also take steps as a consumer to ensure your account is as protected as possible when banking online, whether you bank with a brick-and-mortar or an online bank, also called a direct or digital bank.

The biggest disadvantage of internet banking is that the chances of fraud increases because on internet there are many hackers who by sending emails get information from account holders about their bank account number and password and transfer the money from customer account to their accounts.

DOs & DON'Ts

– Review the account statements frequently to check for any unauthorized transactions. – Change the PIN regularly. – Report a lost or stolen phone / device immediately to the service provider and law enforcement authorities. – Never give the PIN or confidential information over the phone or internet.