Electronic Funds, Cards, and Postal Services
Electronic Fund Transfer (EFT)
Under EFT, a bank transfers wages and salaries directly from the company’s account to the accounts of the company’s employees. Other examples of EFTs include online payment of electricity bills, water bills, insurance premiums, house taxes, etc.
Automatic Teller Machines (ATMs)
An ATM is an automated machine. With the help of an ATM, money can be withdrawn or deposited by inserting a card and typing your Personal Identity Number (PIN). This machine operates 24/7.
Debit Card
A debit card is issued to a customer in lieu of their money deposited in the bank. The customer can make immediate payments for goods purchased or services obtained using their debit card, provided the seller has terminal facility.
Credit Card
A bank issues a credit card to customers who enjoy a good reputation. This is a sort of overdraft facility. With this card, the holder can buy goods or obtain services up to a certain amount, even without having sufficient deposits in their bank accounts.
Communication Services
Communication is an important service that helps in establishing links between businessmen, organizations, suppliers, customers, etc. It educates people, widens their knowledge, and broadens their outlook. It overcomes the problem of distance between people, businessmen, and institutions, thus helping in the smooth running of trade, industrial, and commercial activities. In this fast-moving and competitive world, it is essential to have advanced technology for quick exchange of information with the help of electronic media. The main services can be classified into postal and telecom.
Postal Services
Every business sends to outsiders and receives from outsiders several letters, market reports, parcels, money orders, etc., every day. All these services are provided by the post and telegraph offices scattered throughout the country. The postal department performs the following services:
1. Financial Services
They provide postal banking facilities to the general public and mobilize their savings through the following saving schemes:
- Public Provident Fund (PPF)
- Kisan Vikas Patra
- National Saving Certificate
- Recurring Deposit Scheme
- Money Order facility
2. Mail Services
The mail services offered by post offices include:
- Transmission of messages through postcards, inland letters, envelopes, etc.
- Transmission of articles through parcel facility.
- Registration facility and speed post to provide security of transmitted letters and articles.
- Insurance facility to provide insurance cover for various risks during transmission by post.