INTRODUCTION:
In India, as in many developing countries, the banking sector has been the dominant element in the country’s financial system. The sector has performed the key functions of providing liquidity and payment services to the real sector and has accounted for the bulk of the financial intermediation process. Besides institutionalizing savings, the banking sector has contributed to the process of economic development by serving as a major source of credit to households, Government, business and weaker sectors of the economy like village and small scale industries and agriculture. In recent times, Indian banking industry has swiftly introduced innovative banking technologies in banking services. The current study attempts to measure and compare the effect of the introduction of new technologies through electronic-banking on the service quality, and profitability of banks, and to assess the impact of changing from the traditional means to the electronic banking on the customers and on the banks as well. The study is qualitative and quantitative in nature investigating different objectives which determine the performance of banks mainly in terms of profitability and convenience.

PURPOSE OF RESEARCH
The purpose of this research is to find the changes that took place in banking sector after information technology was introduced in it. The paper shows the role played by banking sector in the economy and the affect after IT took over it. It further explains the benefits and challenges of newly emerged e-banking services. Also the paper tries to depict the customers’ varying perceptions on this e-banking in terms of their convenience. The following research questions have been addressed in the research paper:
What were the changes that occurred in the banking sector after the introduction of technology?
Did this evolution prove to be profitable to the banks?