From a definition statement from an Indian regulatory commission order:

Banking means residual electrical energy after utilization by the

Exclusive or Partly Exclusive Consumer or captive consumption out of
the injected energy in a month into the transmission and/or distribution
system of Corporation/ESCOMs, which will be utilized for its own use or for
wheeling to its Exclusive or Partly Exclusive Consumers at a later
date/month, as per the terms and conditions set forth in this agreement.
It's likely useful to include the definition of wheeling as well:
Wheeling means the operation where by the distribution system and
associated facility of a transmission and/or distribution licensee as the case
may be, are used by the company for the conveyance of electricity on
payment of charges to be determined under section 62 of the Act.
So to paraphrase, if a household or firm are generating their own electricity
and they produce more than they use, they can 'bank' the electricity by
putting it into the grid to reduce subsequent periods when they produce less
than they consume, or it can be shifted to organizations which they have an
agreement with. This allows the grid to be used as a giant battery and a
shared battery for a firm with multiple locations, some of which have
generation.
This is useful for seasonal or cyclical generation sources such as run-of-theriver hydro, or variances seasonally in winds (e.g. high in winter, calm in
summer)