Difference Between Mobile Banking and Internet Banking

Edited by Diffzy | Updated on: September 02, 2023


Difference Between Mobile Banking and Internet Banking

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In this digital world, banking through modern technology and digitalized forms has become essential, like our daily needs. It is one's responsibility to know about banking, what types of banking are available, and how they work. We do lots of transactions every day, and it has now become cashless transactions for the past few years. From spending 1 rp to making millions of transactions, it has become digitalized. Doing transactions through an online form is not a big deal, but doing it carefully matters as money is involved. If it's done wrong, then it's very hard to get it back. I hope this article will be useful for you all to make a safe and fast transaction online. Here, we are going to learn completely about both Internet banking and mobile banking.

Internet Banking vs. Mobile Banking

Internet Banking is where you can do your transactions online; that is, your internet availability is mandatory, and yes, you can transact through your mobile, PC, or any of your devices, whereas Mobile banking does not require the mandatory availability of the internet; you can download a particular bank's app in which you have an account and access it through it, for which you need internet access. But you can do mobile banking with the SMS feature that banks have, for which an internet connection is not necessary; it is also mobile banking. The internet connection is the major difference between these two. Still, both are very effective and useful at the same time.

Difference Between Internet and Mobile Banking in Tabular Form

MEANINGFinancial transactions through online. Mandatory availability of internet connection to perform transactions anytime and anywhere.Transactions are done through mobile or any of your devices for which mandatory availability of internet connection is not necessary.
DEVICES THAT CAN BE USEDComputers and LaptopsMobile and Tablets
AVAILABILITY OF FEATURESInternet Banking contains lots of features that are very secured for doing transactions.Mobile Banking contains fewer features compared to Internet banking but is still safe to use
LOG-IN PROCESSIt needs a Username/ID and Password to log in to your profile and do transactions.It needs a passcode or fingerprint to access the bank application
RECEIVING NOTIFICATIONSInternet banking won't send any notificationMobile banking will send notifications from the app
SERVICE EFFECTIVITYInternet Banking can be used for advanced banking servicesMobile Banking can be used for quick transactions.

What Is Internet Banking?

Internet Banking is also known as E-Banking, Online Banking, and Virtual Banking, which allows people to make transactions digitally through an internet connection in the Bank's website or portal. Availability of the internet is mandatory to do transactions in this.

Types of Transactions Involved in Internet Banking

Real Time Gross Settlement (RTGS)

RTGS is the transaction that takes place in order by order individually to the people. REAL-TIME - meaning making transactions immediately and not delaying any time later. "GROSS SETTLEMENT" - meaning that the transactions take place individually

(as per the transaction took place). It has to be considered that all the transactions that take place are done under the surveillance of the Reserve Bank of India. RTGS transactions are majorly used for large amounts of transactions. The minimum transaction that can be done through this mode is Rs 2 Lakhs, and there is no maximum ceiling. There is no timing limit for doing transactions under this method. This contains two types of transactions that are Inward and Outward transactions. Inward transactions don't contain any tax, whereas outward transactions contain taxes that have to be paid. RTGS transactions can be done both online and offline. Online transactions can be done on a website, whereas offline transactions can be done by filling out an RTGS form by reaching out to your nearest branch.

National Electronic Fund Transfer (NEFT)

NEFT is a general payment mode facilitating one-on-one financial transactions. In this mode of payment, all people or organizations can make payments to any other person or organization who has accounts in a bank branch. The public who don't have bank accounts can also walk into banks and do NEFT transactions. The transaction limit for NEFT is Rs 50,000. The public who don't have bank accounts can also do NEFT transactions. Currently, NEFT transactions are done in hourly slots that are from 8 a.m. to p.m. on weekdays, where you can do 12 transactions, and from 8 a.m. to 1 p.m. on Saturdays, where you can do 6 transactions.

Electronic Clearing System (ECS)

ECS is a mode of electronic payment used for making small transactions such as telephonic bills, Electricity bills, Insurance premiums, and Loan repayments. All these facilities cancel the need for paperwork and make the transaction faster and easier.

Immediate Payment Service (IMPS)

IMPS is a 24*7 electronic payment mode that offers transaction facilities through mobile phones. This mode is available throughout India and is a safer mode of transaction. It can be trusted as much as you do with ATMs and apps.


  1. To make people use mobile for making all financial transactions.
  2.  To make all the financial transactions easier just with their mobile number.
  3.  To fulfill the RBI's goal of making digitalized transactions.
  4.  To develop the idea of making mobile transactions.

What Is Mobile Banking?

Mobile Banking is a mode of making electronic payments using any device, such as a Smartphone or tablet, to operate your banking application on your device. It provides a faster and safer way of doing transactions; it is trustable as much as we do ATMs.

Types of Transactions Involved in Mobile Banking

Mobile Banking Through Mobile Apps

No matter in what bank you have an account, all the bank's applications will be available on the Play Store or Apple Store on that mobile you use. So you can easily download that application to the particular site and get access to their account with the given credentials; it is that easy. Both banking and Non-banking transactions can be done through this.

Get Access to Your Account

You can quickly and easily look into your bank balances and check your payments, insurance details, loan details, EMI details, and all banking-related details. It is not like you can use a banking application only for fund transfers but also to have a record of all your financial-related details, which will always help you for your current and future use.

Transfer Funds

Of course, we mainly use mobile transactions for transferring funds for a person in the same bank or other bank through NEFT, RTGS, IMPS, or UPI. We can also use this mode of payment for various other payments like bill payments, insurance premiums, loan repayments, mobile recharge, DTH payments, etc.


Another perk that we get from using mobile banking is that, without even going physically to banks, we can invest in shares. Bonds and other securities using our mobile phone itself. Invest in high-interest-bearing mutual fund stocks and earn money out of it. All these can be easily done with the help of mobile banking.


Banks use their mobile application to advertise their new offers or schemes that are newly launched in their bank. People can get to know anything new about the bank from the mobile application itself. Regular notifications will be sent to you about the bank through SMS or the app's push notification.

Support Services

You can avail of 24*7 support services from the bank regarding any doubts you get while using the mobile application. It is always better to clear the doubts that you get while using the app whenever money is used.

Mobile Banking Through SMS

Mobile banking is also availed through SMS. People who don't have mobile or internet facilities are informed through SMS about their account status, their balance or any new offers and launches are informed to them through SMs every day. Facilities available, such as

  • Regarding balance inquiry
  •  statements
  •  Blocking of ATM-cum-debit card and credit card
  •  Making enquiring about current interest rates and foreign currency exchange rates
  •  Transferring funds between your Current and Savings account

Mobile Banking Through USSD

Unstructured Supplementary Service Data (USSD), AKA feature codes or quick codes used for communication purposes, is especially for the public who don't have smartphones or internet availability, so they are not necessary. The National Payment Corporation of India owns *99#, a USSD-based service in India. You can check your account balance and transfer money using your account number, Aadhar number, or Mobile Money Identifier (MMID).


In this busy world, no one is up to going to the bank and availing all the banking services or approaching bankers and finishing their bank work like transferring funds or any other work. This modern technological era has made all our work easy. We can handle and take care of our financial stuff with just one click from our home. We can do our transactions work without any rush as we do in the bank. Online, everything is user-friendly, quick, and safe. Making use of both mobile banking and Internet banking can make your lifestyle very easy. Also, you have support services whenever you need them; you can reach them out to solve your queries at any time. Do a stress-free financial transaction from anywhere, anytime.


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"Difference Between Mobile Banking and Internet Banking." Diffzy.com, 2024. Mon. 10 Jun. 2024. <https://www.diffzy.com/article/difference-between-mobile-banking-and-internet-banking>.

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