Bill Gates (2008) announced “banking is essential, banks are not”. This quotation means, the traditional branch banking is going to vanish in order to be surrogated by Electronic Banking (E-banking) which continues to attract new users. It provides users, working with a home computer attached by network to their bank, with the ability to authorize payments, reconcile accounts, and access a variety of other banking services with the help of ATM, Visa Card, Master Card, Q-cash, E-cash, Ready cash, Mobile, Internet etc. E-banking has a lot of benefits which add value to customers’ satisfaction. For collecting the data a highly structured questionnaire was made. The questionnaire was designed into four parts. The statistical techniques used for the analysis were the descriptive analysis, ANOVA analysis and Chi-Square test. There are some associated challenges identified in the study that seem to hinder the success of e-banking services and thus constitute major concern to both financial institutions and customers. The paper recommends various measures should be put in place to make e-banking system smooth, effective and more secure. This paper concludes that e-banking has become important phenomenon in the banking industry and it will continue as more progress and innovations are made in information technology
Keywords: Banking Sector, Challenges and Trends, Online Banking, Private Commercial Banks, e-Banking
