At present, the total Internet users in the country are estimated at 9 lakh. However, it is expected to grow exponentially to 90 lakh in 2003. Only about 1% of Internet users did online banking in 1998. This percentage increased to 16.7% in March 2000. The growth potential is, therefore, immense. Other incentives offered by banks discourage customers from going to physical branches, and therefore remain 'hooked' to the comfort of the banking chair. The ease of accessing one's accounts from anywhere in the world using a personal computer with Internet access, is particularly appealing to high net worth Indians and non-resident individuals who have multiple bank accounts. Internet Banking: Internet technology has changed the way financial services are designed and delivered, and as a result, the banking sector has made continuous innovations - especially in the field of communications and information technology - which have ultimately led to the birth of the idea of ​​what is known as "online banking". Internet banking is a way to retain existing customers and attract more to the bank. Paper-based online banking is defined as “an Internet portal, through which customers can use different types of banking services ranging from paying bills to making investments” (Pikkarainen et al., 2004). Compared to the traditional approach, online banking is a simple and cost-effective way of banking, editing personalized information, and buying and selling goods and services from anywhere at any time. Despite the many advantages that this service offers to the bank and its customers, it remains a double-edged sword and is not used by all customers, due to the greater distance between the bank and the customers a lack of trust can occur and in. .... .paper... of online banking: You can access your account from any Internet-enabled device in the world. It is faster than the traditional banking system. Transactions can be completed in seconds. It's a lower cost. No costs for stamps or envelopes, ATM charges, maintenance costs, without receiving monthly paper statements. Online banking offers email alerts to alert customers against any unauthorized activity. Disadvantages of Online Banking: • Customers are uncomfortable with web browsing and may have difficulty when using online banking. • Online security risks are always present. Piracy and phishing emails pose a serious threat to online banking. • Customers rely on a reliable ISP to conduct their online banking. • Changing banks can be more complicated online than in person. • Should have basic knowledge of computers and Internet. • Tendency towards cyber fraud .