The Indian banking sector has emerged as one of the strongest drivers of India’s economic growth. It has a large geografic and functional coverage. The sector has undergone significant developments and investment in the recent past. Here commercial bank cater to short and medium term financing requirement. While national level and state level financial institutions meet longer term requirements. Banking industries in india has achieved a new hight with the changing times. Most of banks provides various services such as Mobile banking, SMS and Net banking and ATMs to their custmors for their convenience. The use of technology has brought a revolution in the working style of the banks. Banking today has transformed into a technology intensive and customer friendly model with a focus on convenience. However, changing dynamics of banking business also brings new kind of risk exposure.