Banking and monetary regulator, Reserve Bank of India has alarmed banks on the negative effects of internet banking which is gaining platform on a massive scale.

"The use of e-banking has brought many concerns from different stakeholders. Everybody's primary concern is security. As more and more people are exposed to the information superhighway, privacy of information and the security that goes hand and hand with this information is crucial to the growth of electronic transactions,'' said R Gandhi, executive director , Reserve Bank of India.

"The key areas are the security, privacy and authentication," he said.

Increase in security will ensure that the personal information of the customer is protected.

"Also encryption may help make the transactions more secure, but there is also a need to guarantee that no one alters the data at either end of the transaction," Gandhi said.