MEANING, DEFINITION & FUNCTIONS OF

Bank is a financial institutions which deals with other people s money i.e. money given by depositors. The bank accepts deposits from the public. The deposits can be either withdrawn on demand or after a certain period. A bank acts as a connecting link between borrowers and lenders of money. A bank lends out money in the form of loans who require it for different purpose. A bank provides various facilities to the customers. They include general utility services and agency services. The bank operates mainly with cash and bank money such as cheques, drafts etc. the bank plays a vital role in modern business. A bank is an important Aid to trade.

SAYERS:An institution whose debts (bank deposits) are widely accepted in settlement of other people s debt to each other .

Indian Banking Company Act 1949:"A banking company means any company which transacts the business of banking . Banking means accepting for the purpose of lending of investment of deposits of money from the public, payable on demand or other wise and withdraw able by cheque , draft or otherwise."

Accepting deposits from public is the most important function of modern commercial bank.