Technology has opened up new markets, new products, new services and efficient delivery channels for the banking industry. Online electronics banking, mobile banking and internet banking are just a few examples. Technological innovation not only enables a broader reach for consumer banking and financial services, but also enhances its capacity for continued and inclusive growth. The penetration of bank offices in India has grown wider covering even to the rural villages. North Eastern regions are yet to be covered as the coverage is very low. As at end-March 2012, 99 per cent of the identified villages have been provided with banking outlets. Extension of banking services through Automatic Teller Machines has been carried by all types of banks except Cooperative Banks. A survey which has been conducted among 200 sample respondents from Kanyakumari District of Tamilnadu who have bank accounts revealed that they have good experience in banking transactions. The selection of banks depends on the better services, economy in transactions, Convenience, Attraction towards various schemes and to get Overseas Transactions. Though the sample respondents got aware of various technological advancement taking place in the banking transactions, only 62 percent have the habit of using them. The service quality of banking services was measured in five dimensions and it is noted that the average gap is positive and more for the dimension Reliability (0.5), Empathy (0.42) and Responsiveness (0.09) while the other two dimensions Assurance (-0.20) and Tangible (-0.40)are negative. The researcher has applied Trend analysis, Correlation analysis, SERQUAL technique, Factor analysis and percentage analysis and the results are highlighted.