India’s fast shift to digital banking has brought both possibilities and problems, especially in states like Tamil Nadu where differences between cities and rural areas still exist. This research looks at how people in urban and rural areas of Tamil Nadu use digital banking, how satisfied they are with it, and what problems they face when trying to set it up. Using a quantitative study method with stratified random sampling, organized surveys were sent to 400 people (200 from cities and 200 from rural areas) to collect data. The study looks at a lot of different aspects, such as how aware people are, how often they use digital banking, what kinds of services they use, what benefits they think they get, what technology problems they face, and how demographics affect uptake trends. Using chi-square tests, independent t-tests, ANOVA, and association analysis, researchers have found big differences between people in cities and those in rural areas when it comes to how much they use digital banking, how satisfied they are with it, and the problems they face. Urban respondents report higher usage rates, a wider range of services, and better digital skills. In contrast, rural users say that infrastructure problems, trust issues, and a lack of understanding are the main things that keep them from using technology. The results show that while mobile banking is very popular in cities, it is not as popular in rural areas when it comes to internet banking and other advanced digital financial services. Age, school level, and income become important factors in deciding who uses digital banking. The study helps us understand the digital gap in financial services and gives lawmakers, banks, and tech companies useful suggestions on how to make digital banking environments more open to everyone. To close the digital banking gap between cities and rural areas, plans are made to improve digital infrastructure, run tailored financial literacy programs, and create digital solutions that work well in different situations.