The banking sector is the salvation of any modern economy. The success or failure of any economy is depends on its banking sector which is an imperative financial pillars of the financial system. Amidst the sign of progress, the Indian banking sector has been facing multiple and concurrent challenges such as higher NPAs, Cyber crime, Bank fraud, poor assets quality management and lower capital adequacy ratio. The banking industry is changing at a phenomenal speed. Banks are capable to reach large masses with modern technology to facilitate greater ease of communication and transactions are carried out through the internet and mobile devices. Banking sector has made quick strides in streaming and aligning itself to the new aggressive business environment. In concerned with this, the present study needs to spell out some of the major issues and challenges faced by Indian Banking sector.