Commonly known as the Internet, the world's largest network is used extensively throughout the world today.

The Internet has governed the the world in such a wa y that we can dare to claim that our world has never been exposed to such a spee d in using a scientific phenomenon. Millions of people use Internet in various w ays, ranging from personal conversations to online shopping.The access of many p eople to the worldwide web of internet and the spread of electronic communicatio ns among individuals and different organizations through a virtual world has cre ated a suitable situation to establish business and economical relations. Intern et has made it possible for businesses to involve in negotiations such as those between purchasers and sellers, purchase ordering, insurance supply, money trans ferring and so forth to be carried out electronically.Transactions throughout th e world are made easier, thanks to the Internet. It has been observed that the incredible growth of Internet use by individuals a s well as business organizations has altered the competitive arena, which is quite unique and considerably different from that of the traditional, physical marketplace. Accordingly, the d istinctive character of a virtual market has prompted companies to alter their strategies of conducti ng business with consumers. The banking industry is no exception. Numerous banks have already bee n employing the Internet as an alternative service delivery channel. With such an explosive development, how then has Internet banking affected consu mers and how has it affected the way banks do business? Internet banking has now become a global phenomenon. Almost every banking instit ution all over the world has embraced this technological system of banking due t o the numerous benefits it brings, both to the banks themselves and their client s or customers notable among them are convenience and time-saving in doing trans actions. Online banking provides consumers with a convenient method of conductin g bank business from the comfort and security of their own home and personal com puter. Consumers can check account balances and review other account information any time of the day or night.E-banking can offer speedier, quicker and dependab le services to the customers for which they may be relatively satisfied than tha t of manual system of banking. The Internet is now being considered as a strategic weapon and will revolutioniz e the way banks operate, deliver, and compete against one another, especially wh en competitive advantages of traditional branch networks are eroding rapidly.