The banking system in India is ever changing. It has changed with time and has not only made the economy stronger but also made the life of the customer much easier than before. Indian banking system has undergone a total change over the past 10 years. With the adoption of Information Technology, the banking business has reached a greater height. The advancement of electronic banking took place with use of automatic teller machines and later it developed to online banking. Through Electronic Banking, a customer can operate his account and do banking transactions from computer or mobile phone. Facilities delivered by the banks include bill payment, electronic transfers, debit cards, credit cards, mobile banking, telebanking and the like. This Paper focuses on the meaning of E-Banking, evolution, its functions, benefits, challenges and the future of banking in India.

___________________________________________________________________________________

Keywords: E-Banking, Information Technology, Internet Banking, Electronic Transfers, Future Banking.