What is Bank and banking? The activities of bank are known as banking. Bank is an institution engaged in the transaction of money. Banks keep deposits of other money and lend those to others. Bank is the compass of modern business. Bank is the institutions whose debts usually referred to as bank deposits are commonly accepted in final settlement of other people’s debts. (Prof. Sayers). A bank is an office or institution doing a bonfire banking business. (Professor Growth). A bank is a office or institution for the keeping lending and exchanging, etc. of money (Professor Chambers). Banking means the business of bank or bank banker and Bank means an establishment for the custody, loan Exchange or issue of money, for the expansion of credit and for facilitating the transmission of funds . (Webster’s Seventh New Collegiate dictionary).
The history of Banking:
The history of modern banking may be traced in financial activates of the Jews in Italy in the medieval age. The moneyed man of the Europe, especially the Italian Jews started landing money in exchange for some interest sitting on the bench known as banked from which the word bank has developed. Gradually, hole Europe and later on initially has started as commercial banking, and central bank, and other banks have developed. 
The important of Banking:
Banking is a very important function in the modem economy. Bank removes the financial hindrance of commerce. Bank provides short-term finances for the business. Finance or capital is the lifeblood of business. Bank creates and provides finance to the business concerns. Bank encourage saving by providing interest on deposits. Saving crate capital and funds for investment in the economy. Safety of saving or capital is important for the development of any country. Banks provide safety to the saving of the individuals. By the mobilizing and collecting the drifts of individual’s savings banks accumulator’s funds for the economic developed of the country. Bank also provides some other services such as assistance in the remittances of money, investment counseling, lockers services to the valuable ornaments and deeds sale of share and securities, assistance in export and import, Signing payments of local and foreign bill, Collection of foreign representation, etc.
Different Types of banks:
Banking or bank is a comprehensive term in modem time. To the common mass bank means commercial bank. But different types of banks developed and operating in the present-day economic arena.
These banks may be grouped as follows:
1. On the basis of ownership – a. Government or public Bank , b. private or individual’s bank, c. Joint Venture bank d. Autonomous bank , e. Multinational or Foreign bank.
2. on the basis organization- a. Unit banking b. Branch banking c. chain banking d. Group banking e. mixed banking.
3. On the basis of relationship with Center bank– a. Scheduled bank d. Non-scheduled bank.
4. On the basis of function– a. Central bank. b. Commercial bank. c. Agricultural bank. d. industrial bank. e. Cooperative bank. f. Exchange bank. g. Small and cottage industrial bank. h. saving bank. i. Land Mortgage bank. j. School bank. k. Griha home savings -bank. l. Investment bank. m. Consumption bank. n. Employment bank. o. Labor bank. p. Women bank.