The progress to electronic commerce at international level enables the swiftly advancing global information infrastructure (indulging information technology and computer networks such as internet and telecommunication systems). Business strategy and a strong jolt for economic development has become more momentous factor for e-commerce. Due to emergence of a knowledge based economy and society as information and communication technology sophisticated banking services have undergone intense changes during the past decades in order to improve the quality of customer service delivery and impoverish transaction cost, banks have invested to a great amplitude in ICT (Information and Communication Technology) and have adopted ICT Networks for delivering a wide range of banking products and services. E-banking offers services like by E-banking they can view their account balances, view recent transaction, downloading bank statements ( in pdf format ) ; viewing images of paid cheques, ordering cheque books, download periodic account statements, downloading application for E-banking, m-banking etc. Customers can transact their transactions through debit card, electronic fund transfer, ATM etc. This paper scrutinizes the challenges and opportunities of e-banking for the Indian banking sector, during the e-commerce era. The main verdict demonstrates that banks expand to e-banking services in order to stay competitive. To keep track with technological developments and to benefit from diminish cost of e-banking transactions. The main problem faced from e-banking is people are less cognizant with e-banking in previous days but from now onwards after demonetization citizens of India now captivated towards e-banking.