Internet Banking (Fig. 1) is a product of e-commerce in the field of banking and financial services. In what can be described as B2C domain for banking industry,
Internet Banking offers different online services like balance enquiry, requests for cheque books, recording stop-payment instructions, balance transfer instructions, account opening and other forms of traditional banking services. Mostly, these are traditional services offered through Internet as a new delivery channel. Banks are also offering payment services on behalf of their customers who shop in different e-shops, emalls etc. Further, different banks have different levels of such services offered.

Regulations and guidelines issued by some countries include the following. 1. Requirement to notify about web site content
2. Prior authorization based on risk assessment made by external auditors
3. On-site examination of third party service providers
4. Off-site policing the perimeters to look for infringement.
5. Prohibition on hyper links to non bank business sites
6. Specification of the architecture

Broadly, the levels of banking services offered through INTERNET can be categorized in to three types: (i) The Basic Level Service is the banks’ websites which disseminateinformation on different products and services offered to customers and members of public in general. It may receive and reply to customers’ queries through e-mail,
(ii) In the next level are Simple Transactional Websites which allow customers to submit their instructions, applications for different services, queries on their account balances, etc, but do not permit any fund-based transactions on their accounts,
(iii) The third level ofInternet banking services are offered by Fully Transactional Websites which allow thecustomers to operate on their accounts for transfer of funds, payment of different