| Banking
Regulation Act of India, 1949
defines Banking as "accepting,
for the purpose of lending or
investment of deposits of money
from the public, repayable on
demand or otherwise and withdrawable
by cheques, draft, order or otherwise."
Most
of the activities a Bank performs
are derived from the above definition.
In addition, Banks are allowed
to perform certain activities
which are ancillary to this
business of accepting deposits
and lending. A bank's relationship
with the public, therefore,
revolves around accepting deposits
and lending money. Another activity
which is assuming increasing
importance is transfer of money
- both domestic and foreign
- from one place to another.
This activity is generally known
as "remittance business"
in banking parlance. The so
called forex (foreign exchange)
business is largely a part of
remittance albeit it involves
buying and selling of foreign
currencies.
The
law governing Banking Activities
in India is called "Negotiable
Instruments Act 1881".
The banking activities can be
classified as :
1.Accepting
Deposits from public/others
(Deposits)
2.Lending
money to public (Loans)
3.Transferring
money from one place to another
(Remittances)
4.Acting
as trustees
5.Acting as intermediaries
6.Keeping
valuables in safe custody
7.Collection
Business
8.Government business
Bank
Account
A Bank Account is the record
of financial relationship a
customer has with the Bank.
It contains details of all the
moneys deposited with the Bank
and withdrawn from it. There
are many Bank accounts, but
basically there are two types:
DEPOSITS
LOANS 
|
