The banking sector is the backbone of any non traditional economy. It is the important pillars of the financial sector, which plays a main role in the functioning of an economy. It is vital for economic development of a country that its financing requirements of trade, industry and agriculture are met with higher degree of commitment and responsibility. However, the development of a country is integrally linked with the development of banking. In Traditional times, banks were simply be left with payment and settlement business. So transformation from traditional to modern banking relates to intermediate stage when the industry is passing from the earlier or before social banking era to the newly conceived technology based competitive banking and customer centric. Modern banking is the term used for E- banking or Electronic Banking which suggest that banking no longer follows the old type of traditional way but the new modern techno way. However, E banking consist of - Internet banking and banking through other electronic modes such as M-banking, ATM, other apps like GPay, Paytm etc. Banking industries is one the significant service sectors in the Indian economy with modern innovations which push the banking service industry to enhance effective customer services. These modern banking services are paving the ways to interface the customers with their banks. Purpose: The purpose of the study is to look at the functioning of the banks in modern way. There is shift in the pattern from traditional way to modern way in the functioning of banks and this has led to transformations in banking industry. This study focus on comparing the traditional and modern phase of banking.Methodology Type of research is Secondary data.Contribution: Paper is focusing on measuring the overall Customer satisfactions from banking services as now banks are becoming modern by providing e-banking and other types of modern services. Satisfaction level of customers has been enhanced due to modern banking services. And paper also focuses on overall impact on banking industry as banking era is transforming from traditional to modern services. Key words: Traditional Banking, E-Banking, Customer Satisfaction, Technology