Internet technology is rapidly changed, so in banking industry the use of computers in carrying out various day to day activities has been increased. The research focuses on the impact of e-banking or on line banking on the customers or bankers. The usage of this technology is to provide the various facilities to the customers like to reduce the cost, work efficiency, less time consuming, anytime usage etc. It also provides the facilities to the bankers also like to reduce the work burden, time saving, a large number of collection of data, less cost etc. But there are some challenges also as those customers who are illiterate, they can't the use of e-banking and some hackers generate the virus & stolen the pin numbers and misused the cards & cites. Thus total and proper knowledge of use of technology and carefully uses are necessary.