Abstract

The Indian banking sector has undergone a significant digital transformation over the past two decades shaped by technological innovation policy reforms and changing consumer expectations. From the introduction of core banking systems and ATMs to the adoption of mobile banking internet banking artificial intelligence and blockchain digital transformation has redefined financial services delivery. This paper explores the opportunities and challenges of digital transformation in the Indian banking sector. It analyzes how digital banking enhances efficiency improves financial inclusion and strengthens customer engagement while also examining challenges such as cybersecurity risks regulatory hurdles and digital illiteracy. Through literature review theoretical frameworks and case studies of Indian banks the paper argues that while digital transformation is essential for competitiveness its success depends on balancing innovation with inclusivity regulation and trust. The findings suggest t