The paper is an attempt to ascertain the reading habits among under graduate students, and their preferences regarding the sources of information in the digital era of the selected Arts and Science colleges situated in Kanchipuram district. It is found through the study that reading habits have not become less or minimized but has changed to the E-reading pattern because of the availability of E-Resources anywhere at any time beyond the boundaries of the traditional libraries. This in turn helps to increase the reading habits of readers. 225 questionnaires were distributed to under graduate students and 183 questionnaires were received. A suggestion from the users says that the reading habits should be inculcated in children from the initial stage of education. At undergraduate level also there should be a compulsory library hour where students get acquainted with the library resources and library services.