Under Section 5(b) of the Banking Regulation Act 1949, 'banking' means accepting, for the purpose of lending or investment, of deposits of money from the public, repayable on demand or otherwise, and withdrawable by -

Section 5(b) of the Banking Regulation Act 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 cheque, draft, order or otherwise. Section 5(c) accordingly defines a banking company as any company which transacts the business of banking in India. The definition captures the two characteristic functions of a bank, namely the acceptance of deposits from the public and the facility of withdrawing those deposits by cheque, draft or order. Electronic transfer facilities are a later operational convenience and find no place in the statutory definition, and no deposit receipt or signature of the depositor is contemplated as an instrument of withdrawal. The classic formulation, withdrawable by cheque, draft or order, is the correct statutory text.