The integration of digital banking into India's financial ecosystem has played a transformative role in accelerating the nation's digital economy. This study investigates the growth trends and economic value associated with digital banking from FY2019 to FY2025. Using data on digital transaction volumes, transaction values, registered internet and mobile banking users, and UPI users, the paper analyzes the expansion of digital banking services and their direct contribution to digital economic growth. Government-led initiatives such as Digital India, Pradhan Mantri Jan Dhan Yojana (PMJDY), Aadhaar-enabled services, and the Unified Payments Interface (UPI) have laid the foundation for a robust digital infrastructure. These efforts have been strongly supported by banking institutions, financial institutions, fintech companies, and regulatory bodies such as the Reserve Bank of India (RBI) and the National Payments Corporation of India (NPCI), who have played key roles in scaling digital banking infrastructure, introducing user-friendly platforms, and ensuring cybersecurity and trust. Digital banking influences the digital economy by facilitating faster, transparent, and efficient monetary transactions, reducing reliance on cash, expanding access to credit, and enabling inclusive participation in financial systems. It contributes to increased consumer spending, better public service delivery, and improved financial literacy. The active participation of stakeholders, including government agencies, private sector banks, payment service providers, and technology enablers, has significantly driven innovation and penetration of digital financial services across both urban and rural India. The findings reveal a consistent rise in digital banking adoption and its monetary impact, confirming that digital banking serves as a key enabler of financial inclusion, economic empowerment, and the overall modernization of India's digital economy.