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NBFCs are doing functions similar to banks then what is difference between banks & NBFCs?

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NBFCs are doing functions similar to banks then what is difference between banks & NBFCs?
posted Apr 5, 2016 by Babita Thawani

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1 Answer

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NBFCs lend and make investments and hence their activities are akin to that of banks; however there are a few differences as given below:
i. NBFC cannot accept demand deposits;
ii. NBFCs do not form part of the payment and settlement system and cannot issue cheques drawn on itself;
iii. deposit insurance facility of Deposit Insurance and Credit Guarantee Corporation is not available to depositors of NBFCs, unlike in case of banks.

answer Jul 19, 2017 by Rupali Thakur
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