What is Banking and Banking System?
Banking is one of the key drivers of the economy. It provides the liquidity needed for families and businesses to invest for the future.
Banking is a business of accepting deposits and lending money. It is carried out by financial intermediaries, which performs the functions of safeguarding deposits and providing loans to the public.
In other words, Banking means accepting for the purpose of lending or investment of deposits of money from public repayable on demand and can be withdrawn by cheque, draft order and so on.
Banking Company is any company, which transacts the business of banking.
Banking System is a principal mechanism through which the money supply of the country is created and controlled. The banking system enables us to understand Commercial Banks, Secondary Banks, Central Banks, Merchant Bank or Accepting Houses and Discount Houses but to exclude the Saving Banks and Investment and other intermediaries.