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What is the difference between banking and financial services?

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What is the difference between banking and financial services?
posted Sep 5, 2017 by Raghav Choudhary

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1 Answer

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  1. Banks: Firstly, banks are a type of financial institution. They perform a specific function of:
    a. Accepting Deposits: of individuals, non-individuals (partnerships, companies, trusts etc.). They pay an interest on your deposits.
    b. Lending: They give loans and other credit facilities to individuals & non-individuals for their business/personal requirements.
  2. Financial Institution: There are several types of financial institutions. They are:
    a. Banks (Retail & Wholesale)
    b. Non-Banking Financial Companies (NBFCs)
    c. Insurance companies
    d. Pension funds
    e. Others
  3. Mutual Funds
  4. Hedge Funds
  5. Micro-finance institutions (A type of NBFC with a clear distinction)
  6. Co-operative societies
  7. Financial service providers like Stock exchanges, stockbrokers, depositories & their participants.
answer Sep 8, 2017 by Ati Kumar