Any institution accepting deposits from public with or without purpose of lending and investment cannot be termed as bank. If the institution is allowing the depositor to withdraw the deposits whenever he / she wants by a cheque or draft or any written order, then only it will be considered as bank.
Banks are also authorized to carry out certain other transactions such as:
1. Hiring safe deposit lockers
2. Safe custody of articles
3. Remittances 4. Bill discounting
5. Foreign exchange services
6. Trade services
7. Collection of cheques and bills
8. Governments' financial services.
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