The current trends are quite comforting the customer- but it does pose threats and problems to banks. As we find information technology invading the banking sector, only banks, which use the right technology, could come out with success. Banks are required to restructure, reinvent and re-engineer themselves to reach the improved performance and record the competitive edge due to the introduction of information technology. E-Banking being an important output of information technology, has ushered in an era which is transforming   functioning of banks. The title in banking sector from traditional to modern e-banking is a welcoming sign due to multifarious advantages.