Merging is the process by which two weak banks are combined or one healthy bank is combined with one weak bank. Merging is the faster and less costly way to improve profitability and growth of the banks. The main aim of the Reserve Bank of India was to protect the interest of the investors and public large. The big businessmen lost their business and became bankrupt whereby they duped money of the bank flew away to foreign countries by cheating banks to increase NPA’s of the various banks in India. The high level of NPA’s has caused banks merger and acquisition in India, The Indian Government and Reserve Bank of India had to harsh decision and to force the weaker banks to merge with strong and efficient banks. The study will focus on the customers’ perception towards merger and acquisition of banks and its overall impact on customer after merger and acquisition. The purpose objectives of the study are to understand customers’ perception, to examine the level of satisfaction between the customers and banks employees, to study the challenges encountered by the customer for merger and acquisition and to evaluate the overall impact of merger and acquisition on customers in Goa. The data was collected from 131 customers of various merged banks and analysis were conducted by applying simple average method for the purpose of interpretation. The study concludes thattheir trust and commitment was affected due to merger but they are happy and satisfied with new employees, behavior and services provided by the merged banks. So also customers have not faced major challenges and there is much impact on the customers as the banking business flows smoothly as it was before the merger and acquisition