Diffusion of innovations is a theory that seeks to explain how, why, and at what rate new ideas and technology spread through cultures. Information and Commutation Technology has impacted the Banking industry by providing a remote channel to the Banks to reach and service their customers. The study attempts to understand the customers’ adoption and utilization of internet banking in the Mumbai region. Survey method was chosen and a questionnaire was administered in the city of Mumbai. Chi square data analysis tool was used to test the association of the frequency of banking features used/utilized through internet banking with the profile of the customer/ user. The empirical results stipulate that there is still a long way to go with regards to the Internet Banking channel to become primary channel of communication, distribution and service between the Bank and their customers. The paper provides the status of the internet banking adoption by the customers in urban India. This study provides a direction to the Banks to do a comprehensive segmentation of their existing customer base and design a tailored tactic to reach and influence them to adopt the Internet Banking channel