Information technology is fundamentally changing the banking industry and financial supply chain activities worldwide. While the advent of e-banking offers banking firms a new frontier of opportunities and challenges, it is also transfiguring the way business is showed in every industry. Banks, corporations, governmental agencies and other financial institutions in India are not exceptions to this transformation. This study aims at scrutinizing the effect of e-banking on the banking industry as well as its influence on financial supply chain; if India is to adopt modern banking system. The study was based on qualitative methodology and two types of interview monitor questions were administered to some selected bank officials of the four banks and bank customer company managers using purposive and formless interviewing techniques. Findings from the study indicate that e- banking services in India are not yet initiated remarkably. The implementation of modern banking systems is believed to solve current challenges in the banking industry, in the financial supply chain and in e-business as a whole.