A bank is an institution that accepts deposits of money from the public, which are repayable on demand and withdrawable by cheque. Such deposits are used for lending to others and not for financing its own business of any kind. The term lending includes both direct lending to borrowers and indirect lending through investment in open market securities. A sound banking system plays a pivotal role in the growth of a nation's economy. In India, the beginning of banking system dates back to 1881, when the first bank called as 'the Oudh Commercial Bank' was established. It was followed by the setting up of the 'Punjab National Bank' in 1894. Subsequently, a number of commercial banks came up in the country. The number of bank offices multiplied from 8,300 in July 1969 to more than 47,000 in June 1995. It substantially improved the overall availability of banking facilities in the country.