Banks rose to prominence in the public eye after it was revealed he spent time in prison under a false accusation of rape, which halted a career in the NFL.
However, he was offered a place on the Seattle Seahawks roster last year but failed to make the team, but returned this season with the Falcons but again was cut before the start of the campaign.
Banks wrote on Twitter: "As most have heard, my time with the Atlanta Falcons have come to an early end. I want to thank Mr Blank, Dimitroff,& Smith for such an amazing and unforgettable opportunity.
"This experience has shown me a piece of life that was once taken, and where things (football wise) would have been if it wasn't for the 10 years of life loss."
Atlanta also released Theo Goins, Neal Huynh, Terrence Johnson, Charles Mitchell, Micanor Regis, Alec Savoie, Pat Schiller, Jeremy Shelley, Peyton Thompson and Ronnie Wingo.
Meanwhile, quarterback Sean Renfree and tight end Andrew Szczerba have been placed on injured reserve.