The growth of financial services in India has largely been led by the banks. The regulators as well as the banks have led the initial thrust, development and support of digital payments infrastructure and systems. Banking is mainly a service-oriented industry where the customers wish for personalized service and attention whether it is private, government or cooperative. Customer is the key to any business and their satisfaction is the vital factor that helps to improve financial performance and efficiency in the competitive business environment. Thus, the importance of customer satisfaction and service quality has been proven relevant which help to improve the overall performance of organizations. Though the products and services offered by banks are very similar, a bank can differentiate itself from competitors by providing high quality customer service. In today’s world of fierce competition, service quality has been considered as an important tool to gain success and to sustain in the business world. In the present scenario, the Urban Cooperative Banks have been facing diverse challenges in retaining their customers because of competition from public sector banks as well as new generation banks. In this backdrop the paper presents an empirical investigation to measure different dimensions of service quality and perception of customers regarding service quality using SERVQUAL model. Data were collected through field survey using a structured interview schedule among 105 urban cooperative bank customers in Gujarat. The study found that the customers were very much satisfied on the various service quality dimensions of the urban cooperative banks in Gujarat.