This study was conducted to investigate the influence of digital transactions on the profitability of Indian banks, which is an important topic given the sector's fast technological development. The study examines important financial measures such as Return on Assets (ROA) and Return on Equity (ROE) to see how different digital transaction techniques affect profitability. The report evaluates five forms of digital transactions, using data from 12 public and private sector banks from 2018 to 2023: RTGS, NEFT, debit cards, mobile banking, and ATMs. A panel regression model was used to investigate these effects, and the Hausman test was utilized to assess whether fixed or random effects models were appropriate for the data. The research, which was done using R-Studio software, shows that debit card transactions have a large positive influence on both ROA and ROE, but mobile banking transactions harm ROE. RTGS and NEFT transactions have no significant impact on profitability. The Hausman test results favour the Random Effects Model for ROE and the Fixed Effects Model for ROA, demonstrating the significance of both random changes between banks and unique bank features.