Technological developments have been growing at an alarming speed in the international arena. Internet is proudly one of the best in those. So, the banking sector is also making the best utilization of it. In this study based on ONLINE BANKING, it has been observed that the development of online banking has increased by leaps and bounds during the past few years. Concentrating on the Indian economy, the use of online banking is still in the developing stage. Today in India the scope of online banking is growing by a good decent rise in its usage. The rise in the usage of the Internet is the main criteria for development of online banking. This project helps us understand the how the online banking came into existence and its need in the modern world. It shows us the insights of the online banking in India. It helps us understand the opportunities and the challenges associated with the online banking in India.