Bank - Definition - Law Dictionary Home Dictionary Definition bank

Definition :

Bank, Commercially it is a place where money is deposited for the purpose of being lent out at interest, returned by exchange, disposed of to profit, or to be drawn out again as the owner shall call for it. Special provisions are contained in the (English) Companies Act, 1929 relating to Banks. By s. 358, no company, association or partnership consisting of more than ten members shall be formed for the purpose of carrying on a banking business unless it is registered under the Act or formed in pursuance of an Act of Parliament or of letters patent. By s. 360, the liability of the members of a banking limited company remains unlimited in respect of the bank's liability for bank-notes issued by it. As to signature of balance sheets, see s. 129 and ANNUAL RETURNS, ss. 108 and 361. See also JOINT STOCK BANKS and LIMITED LABILITY, and consult Grant, Paget, or Walker on Banking, Chitty's Statutes, tit. 'Bank.'

Means financial institution engaged in the accepting of deposits of money, granting of credit (by loan, overdraft) and other transactions such as the discounting of bills, dealing in foreign exchange, United Dominions Trust Ltd. v. Kinkwood, (1966) 2 QB 451.

The national banks are now: (1) the Bank of England, regulated by the (English) Bank Charter Act, 1844 (7 & 8 Vict. c. 32), and other statutes, which conducts the whole banking business of the British Government, acting not only as an ordinary bank, but as a great engine of state. As to the position and functions of the bank in modern times, consult Bagehot's 'Lombard Street.' As to its origin, see Macaulay's Hist. Of England, ch. Xx.; Hall. Const. Hist., ch. xv.; and for the original Charter, see Pulling's Statutory Rules and Orders, vol. I., tit. 'Bank.' (2) The Bank of Scotland, established by Wm. 3, Parl. 1, s. 5; 44 Geo. 3, c. 23; 9 Geo. 4, c. 65.

(a) means the Reserve Bank of India constituted by this Act. [Reserve Bank of India Act, 1934 (2 of 1934), s. 2 (aii)]

means--

(i) a banking company; or

(ii) a corresponding new bank; or

(iii) the State Bank of India; or

(iv) a subsidiary bank; or

(v) a subsidiary bank. [Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002, s. 2 (1)]

(b) means--

(i) a banking company;

(ii) a corresponding new bank;

(iii) State Bank of India;

(iv) a subsidiary bank; or

(v) a Regional Rural Bank. [Recovery of Debts Due to Banks and Financial Institutions Act, 1993 (51 of 1993), S. 2 (e)]