45.
48
During the discussion arising from our attempts to
determine a satisfactory definition of a "Bank" it became
clear that in making our recommendations two courses were
open to us, namely:-
(1)
(11)
to apply the provisions of the Ordinance to all
Companies and to larger Co-operative Societies
who carry on the business of receiving money
from the public on current account or deposit
account; or
to restrict deposit-banking, 1.e. the receipt of
money from the public on current account or
deposit account, to Companies or Co-operative
Societies whose sole or predominating business
was deposit-banking.
The second course would prevent Companies or Co-operative
Societies from carrying on banking business as a subordinate
business although at present there is no instance of such a
Company. It was agreed that the object of the Ordinance
should be to bring all Companies undertaking banking
business within the provisions of the Ordinance whether
banking was their sole or predominating business or not, and
that the definition of "banking business" in the Banking
Ordinance should be framed so as to include with current
account receiving of money from the public on deposit account.
46. We also considered the desirability of extending
the provisions of the Banking Ordinance, 1921, to include a
partnership or private person; but owing to the difficulties
inherent in regulating an institution which was not subject
to the provisions of the Companies Law or the Co-operative
Societies Law and the fact that at present only Companies and
Co-operative Societies are permitted to undertake banking
business, it was agreed not to recommend the extension of the
provisions