Another word that is frequently used interchangeably with e- banking is "digital banking." Both words are used equally often. Nevertheless, properly speaking, digital banking entails little to no usage of paper money. The usage of paper money is still prevalent, nevertheless. ATMs are a crucial component of the banking system today since they enable consumers to withdraw cash as needed. In a digital economy, there are hardly any monetary transactions. Cash is typically thought of as something that is free. But, using cash has a high price. The expense of currency is discussed in a study piece by Harward Business Review titled "The nations that would benefit most from cashless society." Consumer costs (such as ATM fees, money changer commissions, etc.) are included in the cost of cash. In order to analyse the impact of a CBDC generating interest in the global environment, Dong (2021) worked on statistical models. If a CBDC is the only method of holding value, a higher rate of interest on it might not result in financial disintermediation. Due to the complimentary nature of these deposits and those given by CBDCs, banks and corporations would lend more money and invest more in them. The central bank has instructed banks and non-banking finance firms (NBFCs) to make sure that digital lending apps (DLA's) do not automatically raise the credit limit and do not access the borrower's mobile phone resources. The RBI stated that borrowers must be given a cooling off or look-up period to exit a digital loan by paying the principal and the proportionate Annual Percentage Rate (APR) during this period without incurring any penalties in its "Guidelines on Digital Lending" for Regulated Entities or RES (banks and NBFCs). Yet it is still unclear how the CBDC will really affect the banking sector and the economy. Ten of the eleven nations that have introduced official digital currencies are tiny nations in the Eastern Caribbean, including Jamaica and the Bahamas. In October 2021, Nigeria became the only significant nation to introduce CBDC for retail use. RBI will consequently need to introduce the CBDC and conduct pilot testing very cautiously. The running costs of banks have been significantly cut by digital banking.  Because of this, banks are now able to provide better interest rates on deposits while simultaneously charging lesser costs for services. More earnings for the banks have resulted from lower operating expenses. Conclusion: Indian banks still have a ways to go before adopting technology to the same degree as banks across the world.

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Keywords: Digital Banking, Digital Currency, Blockchain Technology, Digital Retail Lending.