Banking and Retail Industry is going through a significant transformation and it would be largest investor in Artificial Intelligence as per the International Data Forecast (2022).  The McKinsey Global Institute (MGI) predicts that generative AI will contribute a significant value worldwide in the banking industry, equating to 2.8 to 4.7 percent of the sector's total revenues, primarily through enhanced productivity. According to the Indian Financial Services Organizations) FS AI Adoption Survey 2021, chat automation, fraud detection, AI virtual assistants, and customer profiling and classification are the top four applications of AI in banks in India.  The Reserve Bank of India's Annual Survey Report (2022) highlights the growing focus on enhancement of supervisory capabilities through AI and Machine learning. The present paper aimed at the study of integration of Artificial Intelligence (AI) within India's banking industry exploring the application, advantages, drawbacks, and long-term effects. Using a descriptive research design primary data from 175 participants (40% bank customers, 35% banking professionals, and 25% IT experts) was collected and analyzed through guided questionnaires disseminated through social media platforms. The finding highlights a strong adoption of AI across different applications within the Banking Sector mainly fraud detection, customized services, and operational effectiveness. The study offers actionable recommendations for improving customer services, risk management, and regulatory compliance it stresses upon major issues like data privacy and regulatory hurdles. Even with limitations based on sample size, the study provides useful information about the evolving context of AI in Indian banking.