The
Definition Of

Banker

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:

More from this Section

  • Euro
    Euro is official currency of the participating member states introduced on January 1, 1999. Westpac does not deal in the legacy currency of
  • Debt/equity ratio
    Debt/equity ratio is a comparative ratio of debt and equity used to measure the gearing/ health of a business.
  • Value Date
    Value Date is the date on which foreign exchanges bought and sold have to be delivered and the prices payable for them in local currency have to
  • Net Worth
    Net Worth is book value of a company’s common stock, surplus, and retained earnings.
  • Service Charge
    Service Charge is a fee paid for using a service.
  • Prime Lending Rate (PLR)
    Prime Lending Rate (PLR) is the rate of interest charged on loans by banks to their most creditworthy customers.
  • Decision Tree (DT) Approach
    A decision tree shows the sequence of possible managerial decisions and their expected outcome under each set of circumstances or state of nature.