The introduction of information technology to every aspect of human life and business has been so apparent that it does not need to be highlighted more. Information technology has become of great importance in banking system. This study aims to investigate the effect of information technology in the banking system of selected Indian and Jordanian private sector banks. The data are obtained through the senior employees of the banks under study.  The data was analyzed using the mean, standard deviation, t-test to find out the impact of Information technology in the banking system dealings for private banks under study. The findings of the study showed that Information technology contributes to the banking system in mainly three different ways as follows: Use of IT saves the time of the customers and the employees to a great extent and provides up to date information , IT decreases the expenses and IT improves service quality of the banks. It was found that the difficulties encountered by the banks were in Technology up gradation and lack of knowledge of how to use technology. The findings also showed that the use of web as a tool improved customer relationship.

KEY WORDS: Information Technology, Indian and Jordanian private sector banks, time saving, customer benefits,