Modern era, nowadays one can execute transactions from one's computer and the physical interface between the company and bank has reduced to a very large extent. Electronic banking offers two main advantages namely lower cost of transactions and convince. It has many dimensions like internet banking and phone banking. One important factor to be kept in mind regarding electronic banking is security considerations. Information technology has changed the entire spectrum of banking and more and more corporate are now harnessing the advantages of this technical revolution. Maintenance of optimum cash balance requires balancing of maintain liquidity and minimum cash balance. Liquidity ratios can be used as a tool for assessment of optimum cash balance. Cash outflows and inflows are not synchronous. We may have excess cash or deficit. Excess cash can be invested in marketable securities. Electronic banking has made influence on banking transactions. it offers low cost of transactions and convenience. However adequate and reliable safeguards should be taken.

Advantages:

1.Discounts, the credit card and debit cards enables the customers to obtain discounts from retail outlets.
2.Ease of transactions.
3.Quality service.
4.anytime cash facility
5.Transfer service.

Disadvantage:

1.lack of personal contact between customer and banker.
2.Transaction problems, face to face meeting is better in handling complex.
3.security concerns.
4.High start up cost, E banking requires high start up cost.
5.Traning and Maintenance, shortage of trained and qualified staff is a major obstacle in e banking.
Solution, E-banking has made our life ease with great opportunity and services, but security concern remains one of the obstacle in it. Focus should be on security concern, we need to improve it accordingly. If security concerns will be resolved in near future ,E banking will replace banking itself, so there will be no requirement for cash etc.

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