Cloud Computing is emerging amongst all the ascending technologies as the most prodigious process in the chronicles of computing. As it still takes some time to settle, a new challenge as felt whilst its implementation across has been a relatively more gratuitously new. Today as Cloud technology is increasingly expanding across the globe for its resulting benefits but still it needs time to offer its full development. This technology provides a new way to trace bank information system. This paper, in brief, presents the characteristics and applications of the cloud computing. It also explores the innovative applications of cloud computing and elaborates the defects of the framework in banks.