Traditional banks offer many services to their customers, including accepting customer money deposits, providing various banking services to customers. Indian Banks are using E-channel to deliver their services to its customers. Lower delivering cost, increasing sales and safe and convenience to customers. Delivering services through internet channel is fundamental difference from other channels like branch banking, Internet banking, Telephone banking, ATMs (automated teller machines) and Printing pass book machine. The objectives of paper is to study evolution of E-banking, E-Banking services offered by Indian banks, progress of E-banking and challenges face by Indian banks. The study is secondary based and analytical in nature. The study concluded that more and more customer will use E banking services offered by Indian banks.