The study determined the effectiveness of corporate governance in the rural banking industry. Using the qualitative approach, the study surveyed 70 respondents through a researcher-made questionnaire, interview and observation. Statistical techniques include SPSS and Microsoft excel. Atwima Kwanwoma Rural Bank located at Pakyi No. 2 was selected as case study with three of their branches used. The purpose of the research is to ascertain the effectiveness of corporate governance in the separation of the business ownership from management and also to find out about customers’ interest protection. This study revealed how the bank meets its obligation of accountability to their shareholders taking into accounts the interest of other recognized shareholder, the study further revealed that management members acknowledged the fact that the board meets regularly with senior management and internal audit to review policies, establish communication lines, ensure accountability and monitor progress towards corporate objectives. Again the research also revealed that there is the existence of conflict of interest in the organization and this is managed or avoided by clearly defining the organizational structure, segregation of duties and the documentation of policies. Finally, it was also revealed that the Board had policies in place to deal with the possible risks that the organization is likely to encounter. Those policies include: credit management policy, disaster recovery policy and operational guidelines. In conclusion, it was revealed that there is an existence of corporate governance and the proper mechanisms to ensure the effective implementation of the policies of the organization. However, from our observation, it was discovered that there are no proper monitoring tools to ensure the effective implementation and maintenance of the organizational policies.