Information technology has become a necessary tool for today’s organizations and banking industry is not an exception. Digital banking is modern technology based on computerized system of providing banking systems to client with low cost and quick services. Digital banking is part of the broader context for the move to online banking services are delivered over the internet. The shift from traditional to digital banking has been gradual and remains ongoing, and is constituted by differing degrees of banking service digitization. Digital banking involves high levels of process automation and web-based services and may include APIs enabling cross-institutional service composition to deliver banking products and provide transactions. When a bank provides its services online and customers can make transactions, submit requests, and handle other banking activities online, it is called digital banking. The first bank in India to offer internet banking was the ICICI bank in 1996. Since then a number of other banks have followed suit and today most of the banks provide online banking facilities. It provides the ability for users to access financial data through desktop, mobile and ATM services. This paper examines the evolution and role of digitalization in India. It also focuses on the prospects, trends and the extent of scope of the effect of digital technology in the domain of Indian banking.