Digital banking has changed the traditional banking system by offering financial services through electronic platforms like mobile banking, internet banking, UPI, ATMs, and digital wallets. In India, efforts by the Reserve Bank of India and government programs such as Digital India and Pradhan Mantri Jan Dhan Yojana have greatly encouraged digital financial inclusion. However, despite these efforts, the use of digital banking in rural areas is still low due to various infrastructure, education, and social-economic issues.

This study looks at the awareness, usage patterns, and challenges of digital banking services among rural customers, focusing on Indian Overseas Bank. The research uses a descriptive design and relies on both primary and secondary data. Researchers collected primary data from 120 respondents with a structured questionnaire and analyzed it using statistical tools like percentage analysis, ANOVA, and Chi-square tests.

The findings show that while rural customers have moderate awareness of digital banking services, several barriers prevent effective use. The main challenges include poor internet connectivity, low digital literacy, security concerns, fear of cyber fraud, and language barriers.

The study suggests that improving digital infrastructure, increasing financial literacy, enhancing security measures, and providing user-friendly digital platforms in local languages are crucial for boosting digital banking use in rural areas.