In this paper we present an efficient parallel implementation of relaxation iterative methods, such as the Gauss-Seidel (GS) and Successive-Over-Relaxation (SOR), for solving banded linear systems on distributed memory machines. We introduce a novel partitioning and scheduling scheme in our implementation which allows perfect overlapping of computation with communication, hence minimizing latency effects. We provide analytic and experimental results to verify the effectiveness of our approach and discuss its incorporation in other iterative solvers. Experiments on nCUBE and Intel Paragon machines for several sample banded matrices show that the proposed approach yields good performance on these machines.