In the modem era banks can not afford to ignore the importance of Internet as a delivery channel. Although Internet banking offers several advantages, majority of banks' customers are not using Internet banking as reported in several studies. This paper attempts to identify the factors that influence the adoption of Internet banking and how these factors impact Internet banking usage. A survey of Internet banking users was conducted in the National Capital Region of India, at select locations. Based on literature survey and focus group interviews, research model and hypotheses were developed. Exploratory factor analysis reveals five factors perceived ease of use, perceived usefulness, security and privacy, information about Internet banking, and quality of Internet connection that influence adoption of Internet banking. Further, these factors were regressed on use of Internet banking. Impact of all the five factors was found significant. Information about Internet banking was found to be the most influential factor followed by perceived usefulness and security and privacy.
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