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Financial Institutions

IDBI Net

IBDI net is not a complex concept to understand. However, without learning about what IDBI is, IDBI net would seem abrupt and pointless. Therefore, before heading into the details of IDBI net, let’s consider going through a few fundamentals.

Introducing IDBI

IDBI is the Industrial Development Bank of India, set up in the year 1964. Its headquarters are in Mumbai and its parent company is Life Insurance Corporation (LIC).

The purpose of setting up the IDBI is to financial and other credit facilities to struggling industries. Moreover, the IDBI came into existence with the aim to provide financial support credit assistance to needy industries.

Initially, the IDBI continued to operate as an RBI subsidiary. But over time, the RBI it underwent a transfer and now functions under the Government of India (GOI).

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Introducing IDBI Net

IDBI net refers to a new digital platform that IDBI provides to its customers. In other words, it is the platform that permits IDBI net banking. Like any other bank that provides e-banking, IDBI has recently begun offering new services as well.

With the constant development of digitization, it has become the need of the hour to provide convenience to customers. However, this convenience is possible through the successful provision of anywhere banking. With the help of a sound internet connection, a workstation and an IDBI account, IDBI e-banking is a success.

IDBI net

Furthermore, to learn all the more about internet banking, click here.

Significance of the IDBI E-Banking

IDBI e-banking provides 2 basic kinds of platforms that classify as e-banking. The Informative platform and the Transacting platform. However, the informative platform include websites and apps that provide information about the bank.

Some of this information are the name of the bank, objectives, motto, establishment year, etc. However, the transacting platform allows customers to make financial banking transactions.

Furthermore, the following are some of the most essential significance of using the IDBI net.

  1. Industries incur lesser transaction costs by making use of the IDBI e-banking services. Also, the additional travelling overheads are at a minimum because they can get the banking job done from home.
  2. By encouraging IDBI e-banking, the overall paper consumption reduces by a wide percentage. This is possible only because of the paperless internet transactions.
  3. In addition, most of the online transactions are computerized and run on a set of algorithms. The chances of human error are very low. Human error includes customer error, employee error, banking loophole, etc.
  4. Since everyone takes to online operations, IDBI net has become a boon to many industries. Therefore, leading to increased industrial customer loyalty.
  5. Industries that are located in remote parts of the country can gain easy access to IDBI services. With the set up of an internet connection and the ownership of a device, the IDBI e-banking services are made possible. Moreover, this has surpassed all the possible geographical barriers.
  6. Lower costs, fewer errors and lesser fraudulent activities due to the e-banking has led to increased productivity.

The function of IDBI Net

IDBI internet services have the following essential functions:

  1. Industrial customer bill payment
  2. Effective credit rate management
  3. Provision of loans and lending funds to industrial borrowers
  4. B2B Payments
  5. Loan application and approval
  6. Account aggregation, employee benefits, and pension management
  7. Regulation of other banks such as UTI, ICICI and other banks that provide aid to Indian industries.

Solved Questions

Q.Does IDBI only provides its services to industrial customers or to individual customers as well?

Answer: IDBI provides its services not only to industrial customers but also serves individuals who look out for loans to start up a business. If a person is willing to develop its agriculture plot of land, IDBI provides loans for such purposes. Also, there exist a variety of Government set up accounts for women and children benefits.

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