Internet banking or e-banking systems are one of best examples of innovative technologies that have a great potential to create a win-win scenario for both customers and businesses. However, such potential can only be realized when there is sufficient spread of the technology among banking customers which then creates better economic feasibility for financial institutions. Therefore, understanding the factors that impact customers? willingness to use e-banking systems becomes imperative if banks are to witness the expected returns from their investments in these systems. The aim of this study is to understand whether the adoption of e-banking systems can better be explained as an outcome of individual characteristics of customers or as an outcome of the characteristics of the system itself. For this, we build a research model which integrates two types of factors: those that relate to the individual characteristics of the customers (customer-related factors) and those that relate to customers? perceptions of various characteristics of the e-banking systems (system-related factors). The research model is tested using a questionnaire survey of banking customers. This study offers many theoretical and practical implications. Key Words: E-Banking, Adoption, TAM, User characteristics, System.