The study was on factors affecting Customers‟ adoption of E banking services in Tanzania Banking Industry specifically at CRDB Bank Tanzania. The study investigated to what extent were customers at CRDB Bank aware about E-banking, Customer's perception on E banking in CRDB Bank, and Customer's challenges on E-banking in CRDB Bank and ways tosolve the challenges facing the Customers on using E-banking in CRDB Bank. The study involved 86Males and 58Females. The study adopted mixed methodology and the population was based on all levels of management especially on the Centre for Information and Communication Technology. The study used observation, questionnaires and documentation as data collection method that has enabled the researcher to gather relevant data and come up with the conclusion after critically being analyzed. Data has been presented and analyzed using quantitative research techniques. The data obtained was compiled, tabulated and graded in relation to research objectives. The study revealed different challenges such as; network problems, higher rate of charges on ATM outlets and wrong debits, unreliable source of power, operational risks, legal risks, reputation risks, and security codes control challenges, cybercrimes, a legislative Framework, traditional market and convertibility of electronic. It was also revealed ways to improve e banking such as; educations for customers, marketing for more customers, build more outlets for ATM and to improve security. The study concluded that there were benefits of using E-banking such as; time saving, easy access to cash and convenient in the use of the products.