Customer Relationship Management has been practiced in India for several years. It was a neglected part in marketing previously. But today the scenario is entirely different where all firms including the Banking firms find it difficult to attract and retain the customers due to the aggressive competition and liberal economic policies. Due to this factor, firms in India are now taking serious efforts to satisfy their customers. Customer service is an integral part of CRM. Fulfilling the expectations of customers is the way to serve customers. Changing customer needs and expectations are posing challenges to the companies in satisfying their customers. The entry of new generation customer group who need latest technology in Banking Services is posing further problem to the bankers. In this paper an attempt is made by the author to describe the expectations of customers and its importance in Customer service with reference to Banking Industry.