From barter system to digital payment/wallets banking system continuously upgrading themselves for the betterment of their efficiency and effectiveness. Banking and technology are relatively associated have changed over the period. The digital innovation started with the introduction of digital wallets that replaced money and money replaced the barter system and now digital payment technology will be replaced by  Blockchain Technology (BCT). It may be widely applied in digital currency, KYC and trade finance, etc. Although the advantage of blockchain technology is very large but still with various limitations of security, awareness, and scalability which the author wants to address. It's simply a peer-to-peer version of electronic cash which allows online transactions directly from one party to another without going through financial intermediaries. This emerged concept take place of Blockchain Technology. Blockchain is a data management and decentralized technology which is based on encryption and decryption techniques. blockchain technology provides anonymity, data integrity, and security without any third-party authorization involvement. These remarkable capabilities make blockchain technology a very in-demand and promising solution in the  Indian banking sector. This paper aims to provide an overview of blockchain technology with the benefits and challenges to the adaptation of this technology in the Indian Banking Sector. This paper gives insight into various advantages and challenges in the present scenario.

KEYWORDS: Blockchain, Banking Sector, Digital Banking, Core Banking, Information Technology.