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State the difference between NBFC and Bank.
The major differences between NBFC and Bank are as follows −
Provides banking services without holding banking license.
Incorporated under companies Act 1956.
Demand deposits are not accepted.
100% foreign investments are accepted.
Maintenance of reserve ratio are not compulsory.
No deposit insurance facility is available.
They don’t create credit creation.
No transaction services are provided.
It is an authorised financial intermediary to provide banking services.
Incorporated under banking regulation Act 1949.
Demand deposits are accepted.
Allows up to 74% for foreign investments in private sector.
Maintenance of reserve ratio is compulsory.
Deposit insurance facility is available.
Banks create credit creation.
Transaction services are provided.