Renovation in Indian banks is taking place from all aspects and is being refined as time proceeds and the products of the banking industry are enthusiastically modifying the face of banking. Digitalisation accounting systems and information technology can play an important role in the banking sector. Banks using manual banking systems cannot adopt themselves in the changing business environment and cannot provide quick and efficient services to their customers. On the other hand, banks working with computerized accounting / banking system can provide better, efficient and faster services to their customers through them. Advancement in technology and globalization has brought a very high competition within the banking industry. The desire for foreign investment opportunities due to less stringent regulations in the financial sector coupled with regional economic integration has forced most local banks to modernize. This paper defines the way the banking sector is affected and the use of IT products that have changed the face of the banking sector in India. It tells about the current scenario of the banking industry; And the factors leading to change in the industry; And how have these factors contributed to the development of banking. This paper shows how banks have now flourished in one-stop supermarkets. Their focus is flowing from wholesale banking to class banking with the introduction of value-added and customized products. It also presents how the digitization of accounting of banks has helped to compare the differences between computerized accounting systems and manual accounting / banking systems and erase many problems in the banking sector. Technology helps banks create what looks like a branch in the lobby of a commercial building without having to hire manpower for manual operations These branches are functioning 24 x 7 which have become possible due to ATM, Tele banking, Internet banking, e-banking and mobile banking. The technology determined the distribution channels used to reach the maximum customers in the most effective way and at the lowest cost. The glory of these banking novelties is that it puts both the customer and the banker in a win-win situation The need is to design a system to promote marginal efficiency of investment in technology and to widen the gap between marginal benefits and marginal costs involved in banking innovation with special reference to technological upgrading. Paper surveys on the use of several e-channels and related issues have also been shown.

KEYWORDS: Banking Industry, Computerization Accounting System, Manual Banking System.