Technological innovations have changed the world banking and financial system to a great extent and became heart of its operational efficiency. Technology has continuously playing crux role in the working of banking sector of India. The Indian population are connected to the internet and online engagement. IT is playing significant role for increasing the number of devices and figures are used for each and every type of activities. The growth and advancements in technology has led to a paradigm shift in the entire banking operations and systems.  Internet has significantly influenced delivery channels of the banks. Internet has emerged as an important medium for delivery of banking products and services. A sound banking system is helpful to develop the economy and individual growth. Banking sector is a life line of the country. It is vital for development, growth, and creation of jobs, generation of wealth, encouraging entrepreneurial activity and increasing the GDP. “Today, banking is known as innovative banking. Information Technology has given rise to new innovations in the product designing and their delivery in the banking and finance industries”.¹ the research paper divided into five section. In the first part, we explore the increase role of information technology in banking sector. Secondly, I deliberate the increasing use of information technology. Third part of the study is an in-depth study on the impact of technology in banking sector. In the fourth section, we are find out the, obstacles and security during the span of time  when we use Information technology in banking sector or transactions, reveals the factors such as, effectiveness of data management, value added services, level of knowledge and awareness, security, safety, service quality, productivity, and profitability. In recent years, the Reserve Bank of India has endeavoured to improve the efficiency of the financial system by ensuring the presence of a safe, secure and effective payment and settlement system. In the process, apart from performing regulatory and oversight functions the Reserve Bank has also played an important role in promoting the system’s functionality and modernization on a going basis. Fifth and last part is conclusion and suggestions of the theme paper.

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Keywords: Core Banking, E-Banking, Value Added Services, Information Technology.