Question

Which of the following correctly defines “banking” under Section 5(b) of the Banking Regulation Act, 1949?

• A. Accepting deposits only for safekeeping
• B. Accepting deposits for lending or investment, repayable on demand or otherwise
• C. Lending money without accepting deposits
• D. Providing locker and remittance services only

Answer 1

Answer:

B. Accepting deposits for lending or investment, repayable on demand or otherwise

Section 5(b) defines banking as accepting deposits from the public for lending or investment, repayable on demand or otherwise and withdrawable by cheque, draft, order, etc.