Generally, it is said that what a bank does is banking. A bank is an institution and banking is the activities of that institution. For example- collecting deposit; discounting of bills, draft, order, money transfer, giving aid to business etc.
According to Indian Banking Company Act 1949: “Banking means, the accepting for the purpose of lending or investment of deposits of money from the public, repayable on demand or otherwise and withdrawable by cheque, draft, order or other.”
The Oxford Dictionary: “Banking is the business of a banker and the keeping or management of a Bank.”
According to L.Rahman: “The combinations of receiving of deposits, lending, payments of the cheque, discounting bills, investment of funds etc. are called the banking.”
Ordinarily, banking business refers a routine or operations consisting of customers’ deposit accounts, payments of their demand, the collection of monetary instruments, giving loans and advances etc.
