Purpose: Banking is undergoing a tremendous change in terms of access as well as in terms of business. India is a country where the scope of banking can double and can be one of the largest financial systems in the world. Neo banking is an alternative approach to the conventional banking systems that are in place. Banking cannot be slow it needs to be quick and should deliver services at a faster pace. Hence the entire supply chain should be controlled by the technology and technology alone can scale it up. The purpose of this literature review is to understand how banking industry has undergone a revolutionary change over the years and what factors have affected the banking industry. Neo banking is one of such revolution in the banking industry in todays digital era. Hence this study will encompass an understanding of the previous studies conducted on transformation in banking industry and identify the research gap for the new change in banking through Neo banks. The paper identifies different variables regarding banking and neo banking by conducting a detailed literature review. Thus, the paper aims to understand the various dimensions of banking and the prospects for Neo banking in India through extensive literature review.