 What is a NFBC?

Non-banking financial companies are financial institutions that provide banking services, but do
not hold a banking license. These institutions are not allowed to take deposits from the public.
NBFCs do offer all sorts of banking services, such as loans and credit facilities, retirement
planning, money markets, underwriting, and merger activities. The basic difference between
bank and NBFC is:-

- They can’t accept demand deposits.

- They are not a part of the payment and settlement system and can’t issue cheques drawn on
themselves
- They are not registered in the banking act and don’t have a banking license.
-They do not have to maintain CRR SLR Etc.