Most of the Banking activities are derived from the above definition. Apart from the activity of accepting and lending money, banks are allowed to perform certain activities which are supplementary to this business of accepting deposits and lending, Banks are allowed to perform certain activities which are ancillary to this business of accepting deposits and lending. A bank's relationship with the public revolves around accepting deposits and lending money. Another activity which is assuming increasing importance is transfer of money - both domestic and foreign - from one place to another. This process is generally known as "remittance business" in banking phrase. Forex (foreign exchange) business is largely a part of remittance although it involves buying and selling of foreign currencies.
In short, a banker or bank is a financial institution whose primary activity is to act as a payment agent for customers and to borrow and lend money, it is an institution where one can deposit and borrow money and take care of financial affairs.The first modern bank, named Bank of St. George was founded in Italy in Genoa in 1406.
Functioning of a Bank is among the more problematical of corporate operations. Since Banking involves dealing directly with money, governments in most countries regulate this sector rather strictly. In
Borrowing or raising of money
Lending or advancing of money with or without security
Drawing, accepting, discounting, buying, selling and collecting bills of exchange, hundis, promissory notes, drafts, and other instruments
Granting and issuing of letters of credit, circulars notes and travelers’ cheques
Buying and selling of foreign exchange
Buying and selling of bullion
Acquiring, holding, underwriting and dealing in stocks, funds, shares, debentures, bonds and investments of all kinds
Purchasing and selling of bonds and other forms of securities on behalf of customers
Receiving all kinds of bonds or valuables on deposit or for safe custody
Collecting and transmitting of money and securities
Carrying on and transacting all kind of guarantee and indemnity business
Managing, selling and realizing any property which form the security or part of the security for any loans or advances.
Acting as an agent for any government or local authority or for any other persons
Contracting and issuing public or private loans
Insuring, guaranteeing, underwriting, and participating in managing and carrying out of any issue (shares and Debentures) and lending of money for the purpose of any such issue
Undertaking and execution of trusts
Undertaking the administration of estates as executor, trustee etc.
Establishing and supporting institutions funds, trusts etc.
Acquiring, constructing and maintaining building for its own purpose
Selling, exchanging, managing, developing, leasing, mortgaging or disposing its own property
Performing all such activities that are incidental or favorable for the promotion or advancement of its business
Performing all other business specified by the Central Government as the lawful business of a banking company (indianmoney)