Definition of Banking

PPB Banker-Customer Relationship Free JAIIB Capsule 43 views Updated 23 Sep 2026

Capsule FREE

PPB · Banker-Customer Relationship

Under which specific Act and Section is 'Banking' defined as accepting deposits from the public for the purpose of lending or investment?

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Sec 5(b) of the Banking Regulation Act, 1949.

Crucial exam point: Companies accepting deposits only for trading/manufacturing are NOT banks. Deposits must be repayable on demand or otherwise.

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Definition of Banking — Full Text

Under which specific Act and Section is 'Banking' defined as accepting deposits from the public for the purpose of lending or investment?

Answer

Sec 5(b) of the Banking Regulation Act, 1949.

Additional notes

Crucial exam point: Companies accepting deposits only for trading/manufacturing are NOT banks. Deposits must be repayable on demand or otherwise.

Part of Principles & Practices of Banking · Banker-Customer Relationship · Last updated 23 Sep 2026

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