1.

Differentiate financial Institution Vs NBFC with example​

Answer»

BASIS FOR COMPARISON NBFC BANK
Meaning An NBFC is a company that provides banking services to people WITHOUT HOLDING a bank license. Bank is a government authorized financial intermediary that aims at providing banking services to the general public.
Incorporated under Companies Act 1956 Banking Regulation Act, 1949
Demand Deposit Not Accepted Accepted
Foreign INVESTMENT Allowed up to 100% Allowed up to 74% for private sector banks
Payment and Settlement system Not a part of system. INTEGRAL part of the system.
Maintenance of Reserve Ratios Not required Compulsory
Deposit insurance facility Not available Available
Credit creation NBFC do not create credit. Banks create credit.
Transaction services Not provided by NBFC. Provided by banks.



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