The emergence of digital payment solutions has led to a remarkable change in the Indian banking system, especially with the integration of the Unified Payments Interface (UPI) system and Real- time Payment solutions. The emergence of such payment systems has improved the processing speed and convenience associated with financial transactions, thus helping to alter the way customers interact with conventional banking systems. Nevertheless, the banking system still has an important role to play in complex financial services like lending and investments.

This study aims to investigate the effect of UPI and Real-Time Payment Systems on traditional banking institutions, specifically in terms of convenience for consumers, reducing visits to banking institutions, and the superiority of traditional banking institutions in handling intricate financial products. The research work utilizes a quantitative method, and primary research has been conducted, and a questionnaire has been administered to 106 respondents. The hypotheses were analyzed using percent analysis and SPSS. This research work looks to offer a perspective that seeks to explain how Real-Time Payment Systems are transforming and altering the banking habits of consumers, and how traditional banking institutions still remain relevant today in this dynamic digital age of finance.