Banks provide services to customers with the help of modern technology to survive the competitive enrollment of banking sector. Private sector banks deliver better services than public sector banks. Public sector banks must adopt advanced technology to deliver banking services efficiently to the customers. Customers avail wide range of banking services without visiting bank premises through e-banking. Bank should deliver banking services according to the expectations of customers. E-banking reduces cost of e-banking operations and saves time. Customer services is very important tool for the growth of banking sector. The work culture of private sector banks is better than public sector banks. Rural customers face more difficulties than urban customers to avail banking services due to inadequate infrastructure of banks in rural areas. The concept of banking is changing very fast due to improvement in technology. Banks are using artificial intelligence to provide high quality services to customers. Customer satisfaction plays important role to achieve customer loyalty. In this paper, an attempt has been made to find out challenges and opportunities in banking sector.