Digital Transformation in Indian Banking Sector: The Evolution of E-Banking.

Abstract

The advancement of information and communication technology (ICT) has significantly transformed banking services from traditional branch-based operations to digital and real-time platforms. This study examines the evolution of e-banking in India and analyses the growth trends of major electronic payment systems to understand the structural transformation of the banking sector. The study is based on secondary data collected from the Reserve Bank of India (RBI), National Payments Corporation of India (NPCI), and other official sources for the period 2016–17 to 2023–24. The development of e-banking is reviewed across four phases—Genesis, Growth, Development, and Maturity. A comparative analysis of transaction volumes and values of Unified Payments Interface (UPI), National Electronic Funds Transfer (NEFT), and Real-Time Gross Settlement (RTGS) is conducted to identify emerging trends. The findings indicate that UPI has grown exponentially and has become the dominant platform for retail digital payments, while NEFT and RTGS continue to serve medium- and high-value transactions. The results reflect a clear shift toward high-frequency, low-value, real-time transactions. The study concludes that India has emerged as a global leader in digital payments, with strong policy support and technological infrastructure driving the rapid expansion of e-banking.