ABSTRACT: E-commerce stands for electronic commerce and pertains to trading in goods and services through the electronic medium.B2B, B2C, C2C and similar opportunity help consumer preferences and consumer markets developing electronic infrastructure for challenges of the future. This research paper describes the invention and accessibility of internet connectivity and powerful online tools has resulted a new commerce era that is e-commerce, which has completely revolutionized the conventional concept of business. E‐commerce can enhance economic growth, increase business opportunities, competitiveness, better and profitable access to markets. The paper also highlights the challenges faced by Indian banks in adoption of technology and recommendations are made to tackle these challenges. The paper concludes that in years to come e-banking will not only be acceptable mode of banking but preferred mode of banking