What is Non-Banking Financial Company and differences between bank and NBFC

Non-Banking Financial Company and bank

Non-Banking Financial Company and bank jobisearchA (NBFC) Non-Banking Financial Company is a company registered under the Company Act, 1956. This is similar to the bank but is not a bank.

Bank is a financial company and organization.

What is Non-Banking Financial Company

Non-Banking Financial Company the organization says be registered under the Companies Act 1956.its main work is invest to different type of shares, stock, bonds, debentures, securities, insurance, invest in chit-related duties. NBFC cannot accept demand deposits.

What is bank

Bank is a financial company the loan to deposit funds from the public. A bank is a financial organization accepts deposits and credit from the public. Banking organization is more important to all of us.

Differences between bank and Non-Banking Financial Company

  • NBFC is under the company Act. 1956. Registration is necessary from under the RBI.
  • Bank is operating of under the 1949.
  • In banks with the general public are large currency transactions.
  • NBFC cannot accept demand deposits.
  • NBFC does not invest in the construction of fixed assets.
  • Bank is completed the entire requirement both agriculture and industries field.
  • Non-banking financial company does not part of the payment.
  •  Non-banking financial company cannot accept demand deposits.

Question 1. What is Non-banking financial Company?

Answer 1. Companies which take deposits and extend credit like a bank is called NBFC.

Question 2. What is the difference between bank and NBFC?

Answer 2. NBFC does not invest fixed assets and bank is investing both assets.

Question 3. What is bank?

Answer 3. Bank is a financial company to take money from the public works.