Digital Technology and Banking- A Comprehensive Study of Indian Banking Sector

Digital banking has emerged as a key driver of efficiency and financial inclusion in the Indian banking system; however, its effective adoption depends largely on customer awareness. This empirical study examines the level of customer awareness on digital banking in Davangere District, Karnataka. Primary data were collected from 120 bank customers using a structured questionnaire. The study employed percentage analysis and the Chi-square test to analyze awareness levels and examine their association with selected demographic variables. The results reveal that 100% of the respondents are aware of ATM services, while awareness of UPI payments accounts for 95% and mobile banking applications for 81.7%. In contrast, awareness of internet banking (63.3%) and grievance redressal mechanisms (45%) remains relatively low. The Chi-square analysis indicates a significant association between customer awareness and age (χ² = 6.87, p < 0.05) and educational qualification (χ² = 12.44, p < 0.05). Fear of cyber fraud (40%) and poor internet connectivity (30%) were identified as major challenges. The study concludes that targeted digital literacy programs and enhanced customer education on security practices are essential to promote safe and inclusive digital banking adoption.