Banks play an important role in the development of a country, as reservoirs of resources necessary for the economic development. Since three decades the banking services have become competitive especially when the countries have opened the doors to foreign banks. Hence an efficient customer service and real understanding of the client’s business is becoming absolutely vital. Thus it becomes necessary for the banks to focus on service quality as a core competitive strategy. With this background service quality and customer satisfaction are forcing the attention of the banking institutions across the world and India is not an exception. In this context, in this study,an attempt has been made to understand how the Indian customers perceive service quality and their satisfaction levels in retail banking.