European Journal of Accounting Auditing and Finance Research Vol.3, No.4, pp. 25-57 April 2015 Published by European Centre for Research Training and Development UK (www.eajournals.org) 25 ISSN 2053-4086(Print), ISSN 2053-4094(Online) E-BANKING AND PERFORMANCE OF COMMERCIAL BANKS IN RWANDA A CASE OF BANK OF KIGALI Asia Ngango , Dr. Mbabazi Mbabazize, Dr. Jaya Shukla Department of Business Administration, School of Human Resource Development Jommo Kenyatta University of Agriculture and Technology, Kigali Campus ABSTRACT: The purpose of this research was to examine the contribution of E-banking towards banking on performance of banking Institutions in Rwanda because according to National bank of Rwanda (NBR Report, 2012) there is delay in payment of checks between banks; time wasted in banks as people line in queue waiting for service, errors as a result of manual work and fraud related cases was common. Bank clients complain of the above hence the researcher was interested to examine the contribution of this system to banking efficiency in Rwanda. The study used descriptive research design by basing on qualitative and quantitative approach in order to get better analysis of the study. Both primary and secondary data collection tools were used with their relevant tools like questionnaire and documentary analysis in order to come up with required data. In the findings it was established that Electronic banking system like ATM, Pay direct, electronic check conversion, mobile telephone banking and E transact has a great impact on bank performance because they increase profitability, reduce bank cost of operations, and increase bank asset and bank efficiency. The great contributions of e banking on banking performance is shown in table 4.21 which provides the relationship between E banking and Performance of bank of Kigali in Rwanda whereby the respondents N is 44 and the significant level is 0.01, the results indicate that independent variable has positive high correlation to dependent variable equal to .656 ** and the p-value is .000 which is less than 0.01. When p-value is less than significant level, therefore researchers conclude that variables are correlated and null hypothesis is rejected and remains with alternative hypothesis. This means that there is a significant relationship between E banking and Performance of bank of Kigali in Rwanda. As conclusion E banking contributes to positive performance of banks as witnessed by of bank of Kigali. KEYWORDS: E-Banking, Commercial Banks, Bank of Kigali, Rwanda INTRODUCTION Background of the study The new millennium brought with it new possibilities in terms of information access and availability simultaneously, introducing new challenges in protecting sensitive information from intruders while making it available to others. Today’s business environment is extremely dynamic and experience rapid changes as a result of technological improvement, increased awareness and demands Banks to serve their customers electronically. Banks have traditionally been in the forefront of adapting technology to improve their products and services (Aladwani 2001).The Banking industry of the 21st century operates in a complex and competitive