The main aim of the study is to know the satisfaction of customers towards paperless banking transactions and identify the problems faced by customers while using the paperless banking. The present study is of exploratory-cum-descriptive in nature. A sample of 150 sample respondents, who use paperless banking, is taken on the basis of judgement sampling from the Tirunelveli city. The data were collected through a well structured questionnaire. To analyze the data, simple statistical techniques such as mean, standard deviation (S.D.) were used. Mann-Whitney U test and Analysis of Variance (ANOVA) technique has been used to test the hypothesis and validate the results. It is found that enter incorrect receivers details by typical error and forget password/UPI pin number are the important problems faced while using the paperless banking among the sample customers who are government employees and forget password/UPI pin number and transaction failed due to poor net connection/server busy are the important problems faced while using the paperless banking among the sample customers who are private employees. It is recommended that service providers address the challenges highlighted so as to give customers a worthwhile experience when taking up this innovation because the benefits of paperless banking are yet to be fully explored beyond convenience.