The aim of this study is to assess and identify the relationship between service quality and customer satisfaction of Bank Rakyat on SERVQUAL model. This research used self administered technique and it questionnaires data was collected from 250 respo ndents out of 650 major customers. The data that have been collected was detail analyzed using both inferential statistical and descriptive analysis techniques. Based on this study, it is identified and found that all dimensions of service quality have a noticeable impact on service quality and customer satisfaction. This study concludes that of all the quality of services offered it is very good and customers are satisfied with the services of Bank Rakyat. The researcher recommended that Bank Rakyat should give the priority of aspect to care especially about the customers as much as the given services, know about the business product properly and also focus on tangible aspect as good appearance of employees, equipment, physical facility, personnel and communication materials.