Financial Institutions are slowly moving from Brick and Mortar (Physical branches) to click
and Brick (E-banking). ATM's are the most popular electronic delivery channel for banking services
in Nepal. Only few customers are using internet banking facilities. Nepalese financial institutions till
date have not faced any kind of electronic fraud or risk. Banks have basic security tools like firewall,
lightening/power surge protection. But it is found that the some banks are in lack of having regular
back up of website information and E-banking policy. Nepalese banks are using E-banking for their
own convenience and for the purpose of retaining exiting customers. The cost analysis of most of the
banks in Nepal is seems to be either inadequate or not applied due to their narrow space of business
transaction or lack of sufficient tools. No significant correlation was found between use of E-banking
and gender, marital status or salary of customer. However, Use of E-banking signification association
was found with age and education.