As per section 5(b) of Banking Regulation Act, 1949, “banking” means the accepting the deposits of money from the public for the purpose of lending or investment. The deposits is repayable on demand or otherwise, and withdrawal by cheque, draft, order or other wise. The section 35A of Banking Regulation Act confers powers on RBI to give directions in relations to acceptance of Deposit by Banks. RBI may issue directions to prevent the affairs of any banking company being conducted in a manner detrimental to the interests of the depositors.
A bank may accept deposit in the form of current, savings or term deposit.
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Punjab Civil Services 2021