Banking Sector is an important and significant segment of the Indian economy and act as a backbone of economic Progress. Currently the most important factor shaping the world is Globalization. The benefits of globalization have been well documented and are being increasingly identified. Therefore banking industry transformed into a very volatile and competitive industry. It has undergone sea change in last one decade and changing very fast. It has become a challenge to keep pace with technological changes and advancement for the Indian Economy. The new entrants have compelled the commercial banks to change their system and attitude to meet the situational demand for their survival.

During the last decade the pattern of Commercial banking has undergone a considerable change. The IT revolution and Globalization aroused enormous expectations from the banking sector in India. Their activities have extended to achieve the economic development and economic growth of the country.

The new banking policies, as formulated in the Global era have sought to change the very structure of commercial banking in the country. The wind of liberalization and Globalization sweeping through India has affected all sectors of the Indian economy and the centre of all the activities is the Indian Banking Industry. In such a fast-changing environment to meet emerging needs, the operations in banks need immediate automation to provide services comparable to best international standard and to match technological changes taking place in other countries. 

This paper discusses the rapid changes in banking sector due to globalization, liberalization and deregulation. This has made Indian Commercial Banking Sector more competitive segment in financial market. The Objective of this chapter is to make aware about the technological up-gradation in the banking sector, Customer services, customer  friendly approach, hassle free banking around the clock, overseas operations of the Indian Commercial Banks, Financial inclusion etc.

KEYWORDS: Information Technology, Overseas operations, Computerization.