Generally a person who is doing the banking business is called banker.

According to Dr.Hart, "A ‘Banker’ is one who in the ordinary course of his business honors cheques drawn upon him by persons from and for whom he received money on current accounts."

According to Sir John Paget, "No person or body corporate or otherwise can be a banker who does not: take deposit accounts. Take current accounts, issue and pay cheques drawn on himself and collect cheque for his customer."

It is said in  English Bills of Exchange Act-1882,  ‘Banker’ includes a body of persons, whether incorporated or not, who carry on the ‘business of banking’.

So, it can be said, that a banker does 'business of banking' i.e. accepts deposits withdrawable by cheques.

Share it:  Cite

More from this Section

  • Corporate finance
    The department of a corporation which is involved with company’s financial activities ...
  • Theory of asset demand
    Theory of asset demand is the theory that the quantity demanded of an asset is (1) usually ...
  • Monetizing the debt
    Monetizing the debt is a method of financing government spending whereby the government ...
  • Prepayment
    Prepayment is paying for goods at the time the order is placed and prior to receipt of ...
  • Absorbed
    Absorbed used in context of general equities. Securities are "absorbed" as long as there ...