In the present scenario, the demand of banking is anytime, anywhere banking, this requires innovative robust secure optimized and ready to meet the expectations of empowered and tech savvy customers. If you are a banker, online shopper, tech savvy person or even a regular bank customer, you must have definitely heard the word “digital banking”. Interestingly, most people have a different take on digital banking. There is a lot more to digital banking than just a few features that we can see on the surface. Digital banking is converting the brick and mortar banks into more greener and efficient places to operate. There are a plethora of options that people can opt for when it comes to banking. Now people can check their bank account details, pay their bills online, transfer money to other accounts, and all of this can be done from the very comfort of their home. All that the people need for banking these days is an internet connection. This paper covers Evolution of Digital Banking in India, Role of digitization in Indian banking, Factors affecting the scope of Digital Banking in India from Legal point of view and the Banking laws to guide safer usage for the protection of customers from unlawful practices by the backers. The present study is based on secondary data. The data has been extracted from the various sources like research articles, publications from Government of India, various bulletins of RBI and authenticated websites. The study found that, digital banking has drastically reduced the operating costs of banks and has made the life of customers easy in their day today operations but at the same time the laws has to be more stringent and updated in order to protect the customers who never knows what’s happening in the other hand as they simply click an “OK” button. The study also found that, Digital Banking is having enormous potential to change the landscape of financial inclusion. Easy and safe use of Digital Banking can accelerate the integration of unbanked economy to the mainstream and create confidence in the minds of customers.