Land banking is the practice of purchasing undeveloped land with the intention of holding on to it and selling it (often to a developer) at a profit at a future date.
Land banking companies typically seek investors to buy small plots of land and promise them high potential returns. Some may also promise regular payouts for a fixed period.
The land is usually on the outskirts of a city, where urban development appears to be likely to take place. Investors are often told that developers would be willing to buy the land at much higher prices when the land is developed or when plans for urban development are drawn up.