Banking service has become unprecedently fast due to the advent of information and communication technology. Internet banking is increasingly becoming popular because of convenience and flexibility. The present paper explores the major factors responsible for internet banking based on respondents’ perception on various internet applications. It also tries to examine whether there is any relation with the demographic variables and respondents perception about Internet banking. This study finds that majority of the account holders who use e-banking are male and youngsters. They use e-banking facility mostly for online shopping, mobile banking and online payment. Most of the e-bankers are using online services for the purpose of seeking product and rate information, to check balance online and for online shopping. The factors which influences the e-banking customers to use e-banking are safety & time saving, Easy payment & record maintenance, virtual banking and speedy processing. There is no significant difference in the perception of customers of public and private sector banks on the usage of e-banking facilities and the level of satisfaction of the customers was found to be more or less same.