The 20-year-old former Liverpool man arrived at Home Park on Thursday and will go straight into manager John Sheridan's squad for Saturday's game with Dagenham.
Banton, who began his career as a schoolboy at Tottenham before spells at Arsenal and Blackburn as a youngster, signed professional terms at Anfield in 2011 and spent a loan spell at Burton before joining the Eagles in October.
The former England Under-17 international made his Palace bow in the FA Cup third round draw with Stoke earlier this month.
Banton will be available up to, and including, the League Two clash with Barnet on Saturday March 2.
