Banking - Definition - Law Dictionary Home Dictionary Definition banking

Definition :

Banking, means the accepting, for the purpose of lending or investment, of deposits of money from the public, repayable on demand or otherwise, and withdrawal by cheque, draft, order or otherwise. [Banking Regulation Act, 1949 (10 of 1949), s. 5 (b)]

The expression 'banking' in Entry 45, List I means all forms of business which since the introduction of western methods of banking in India, banking institutions have been carrying on in addition to banking as defined in S. 5(b) of the Banking Regulation Act, and on that account all forms of business described in S. 6(1) of the Banking Regulation Act in clauses (a) to (n) are, if carried on in addition to the 'hard-core of banking' banking and the Parliament is competent to legislate in respect of that business under Entry 45, List I, Rustom Cavasjee Cooper v. Union of India, (1970) 1 SCC 248 (280): AIR 1970 SC 564: (1970) 3 SCR 531. (Constitution of India, Sch. VII, List 1, Entry 45)

In ordinary parlance 'banking' is business transactions of a bank, Vimal Chandra Grover v. Bank of India, (2000) 5 SCC 122 (130): AIR 2000 SC 2181. [Banking Regulation Act 1949 (10 of 1949), s. 5(b), (c)]