top button
Flag Notify
    Connect to us
      Site Registration

Site Registration

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

+2 votes
187 views
NBFCs are doing functions similar to banks then what is difference between banks & NBFCs?
posted Apr 5, 2016 by Babita Thawani

Share this question
Facebook Share Button Twitter Share Button LinkedIn Share Button

1 Answer

0 votes

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
...