Banking sector in India like many other sectors has been experiencing a rapidly changing market, new and modern technologies, economic uncertainties, changing and more demanding customer services and above all fierce competition, that has presented an unpredictable set of challenges for them. In order to face this constant evolution of new challenges, the commercial banks have to reinvent their understanding of their clients and reexamine the value and service quality to assure that they make far reaching implications in terms of service quality and customer satisfaction. In order to be successful in the market it is not only sufficient for commercial banks to attract new customers but also concentrate on retaining existing customers implementing effective policies of customer satisfaction. Customer satisfaction can be considered as the essence of success in today's highly competitive world of business. Customer satisfaction increases the existing customer loyalty, repurchase process, awareness of the people about the firm, decrease the price flexibility, the cost of gaining new customers and prevent the customers being affected from competitive enterprise. With better understanding of customers' perceptions, commercial banks can ascertain the actions required to meet the customers' needs. The present study assesses the status of customers’ satisfaction with respect to select dimensions of service quality in commercial banks operating in Silchar town of Assam. Keywords: customer satisfaction, service quality, competition.