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 which of the following means?

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. The definition captures the twin functions of a bank, namely acceptance of deposits from the public and their deployment for lending or investment, together with the facility of withdrawal by cheque or similar instruments, which distinguishes banking from mere money-lending. Section 5(c) then defines a banking company as any company which transacts the business of banking in India. Limiting withdrawals to cheques, cash or electronic modes alone would miss the breadth of the statutory definition, which expressly covers drafts, orders and other modes of withdrawal as well.