The
Definition Of

Banking

Generally all the activities of a bank is called banking. In a broader sense, banking is the summation of financial services like collection of deposits from people, collect cheques, grant loan, transfer money, invest fund, safeguards money for its customers, etc. Some

Definitions of banking are as follows:

  • “Banking means the accepting, for the purpose of lending or invest of deposits or money from the public, repayable on demand or otherwise, and withdrawanable by cheque, draft, order or otherwise“.

                                                                 Indian company act  1949,section5(1)

  • Banking means the activities undertaken by banks: this includes personal banking and commercial banking, and corporate banking”.

                                                                 Oxford dictionary of finance and banking

            From the analysis of above definitions it can be said banking is the business of providing financial services to the private individuals, corporations, government agencies, business and industries.

Share it:

More from this Section

  • Outright
    Outright is the purchase or sale of foreign currency for delivery at any forward date beyond two working days ahead.
  • Spot Exchange
    Spot Exchange is foreign exchange bought and sold for immediate delivery. In practice, almost invariably for delivery two business days after
  • Haircut
    Haircut is the difference between the market value of a security and its value when used as collateral. The haircut is intended to protect a
  • Derivative deposits
    Deposits created from different underlying transaction of bank is called derivative deposits. The prime underlying transaction includes ..
  • Financial Manager
    Financial Managers are those who plan, organize, direct, control and evaluate the operation of financial and accounting departments. They create and comply financial policies and methods.
  • Call
    In banking call means a demand for payment under a loan or guarantee.
  • Pure Conglomerate Merger
    Pure Conglomerate Merger is a combination of firms in non-related business activities that is neither a product-extension nor a geographic-