definition of Banker
The definition of banker is evolutionary as well as at that topographic point is no universally acceptable definition. The next are about of import definitions given yesteryear diverse authorities.
According to Dr. H. L. Hart, “A banker or banking concern is a someone or society carrying on the line of piece of employment organisation of receiving moneys, as well as collecting drafts for customers dependent plain to the obligation of honoring cheques drawn upon them from fourth dimension to fourth dimension yesteryear the customers to the extent of the amounts available on their electrical flow accounts.
The inwardness of Hart’s definition is that a banker accepts deposits on electrical flow accounts which are withdrawable on demand. But a banker performs many to a greater extent than functions. He accepts non entirely deposits on electrical flow accounts but too on a fixed deposit accounts. This definition has covered entirely deposit share as well as ignored the lending function. Hence this definition cannot survive called every bit a valid definition of a bank.
According to Sir John Paget, ‘a banking concern or banker is a company or a someone (or a grouping of persons) who conduct keep coin on electrical flow accounts, pay cheques drawn upon such account, on need as well as collect cheques for customers; that if such minimum services are afforded to all as well as sundry without restriction of whatsoever kind, the line of piece of employment organisation is a banking line of piece of employment organisation whether or not, other line of piece of employment organisation undertaken at the same time’. Paget too did non include the lending share as well as thence cannot survive considered every bit a valid definition.
According to Sec. v (b) of the Banking Regulation Act, 1949, ‘banking’ agency the accepting for the purpose of lending or investment, of deposits of coin from the public, repayable on need or otherwise, as well as withdrawable yesteryear cheque, draft club or otherwise. Sec. v (c) defines banking society every bit whatsoever society which transacts the line of piece of employment organisation of banking. This definition covers the 2 basic functions (such every bit accepting deposits as well as lending money), as well as hence, tin survive considered every bit an appropriate definition of banker.