Difference between NBFC ( NON-Banking Financial Company) and Bank withits comparison chart

In this article we will discuss about Difference between NBFC ( NON-Banking Financial Company and Bank with its comparison chart.


NBFC (Non-Banking Financial Company)

NBFC are the financial companies which provides financial service to its customers without holding licence of bank. and these are registered under companies act 1956. It engaged in the business of loans and advances, acquisition of shares, stock, bonds hire-purchase, insurance business or chit business but does not include any institution whose principal business includes agriculture, industrial activity or the sale, purchase or construction of immovable property.

Banks

Banks are the financial institution which provides financial service to its customer and controlled by RBI. Banks are incorporated under Banking Regulation Act, 1949 and controlled by RBI.

The main function of banks is to accepting deposits from public and creating credits. it also provides loan facilities to household, firms, etc.Bank are those institutions which operate in money and also create credit.Bank provides safety, liquidity and profitability to its customers.

Difference between NBFC (Non-Banking Financial Company)

BASIS

NBFC

Banks

Meaning NBFC are Non-Banking Financial Company is the financial institution which provides financial service without holding account. Banks are the financial institution which provides financial service to its customer and controlled by RBI

Incorporated under NBFC are incorporated under companies Act 1956. Banks are incorporated under Banking Regulation Act, 1949

Controlled By Various measures in NBFC are controlled by RBI

Banks are Fully controlled by RBI
Cash Reserve Ration NBFC doesn’t have to maintain CRR. Banks have to maintain CRR to RBI

Statutory Liquidity Ratio Doesn’t maintain SLR It’s compulsory to maintain.

Credit Creation Doesn’t create credit Banks creates credit

Deposit Insurance Facility Not Available Available

So we have studied Difference between NBFC ( NON-Banking Financial Company and Bank with its comparison chart and if you have any query please let us know in the comments section below.

bank vs nbfc, banking and non banking, banks vs nbfc, Comparison of NBFC and Banks, Concept of banks, concept of NPFC with its difference with banks, define nbfc, diff between nbfc and bank, difference between bank and banking, difference between bank and financial institution, difference between bank and nbfc, difference between banking and finance, difference between banking and non banking, difference between banking and non banking financial institutions, difference between banks and financial institutions, difference between banks and nbfc, Difference between NBFC ( NON-Banking Financial Company and Bank with its comparison chart, difference between nbfc and bank,   cexample of nbfc, examples of nbfc in india. examples of non banking financial companies, full form of nbfc, full form of nbfc in banking, images of banking, meaning of nbfc, nbfc activities,nbfc and bank, nbfc and bank difference, nbfc banknbfc examples, nbfc full form in financial sector, nbfc meaning, nbfc mrunal, nbfc vs banknbfc vs banks, nbfcs full form, nbfcs meaning, payment bank mrunal, small bank and payment bank, what is nbfcs ,what is non banking financial company

 

Leave a Reply

Your email address will not be published. Required fields are marked *