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 npower League 2 clash with Barnet on Saturday March 2.
Meanwhile, left-back Robbie Williams has left the club by mutual consent.
The 29-year-old, who has made 46 appearances for the Pilgrims, will now seek first-team football elsewhere having not featured under new boss John Sheridan.
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