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What is the differences between Bank and NBFC?

NBFC and Banks both are involved in financial activities, but both have difference in activities which we see in this presentation.

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What is the differences between Bank and NBFC?

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  1. DIFFERENCE BETWEEN BANK & NBFC

  2. Alot of individuals would come across the word NBFC. Hearing this, they would think that all finance companies established would carry out activities related to a Bank. However, there are specific differences between a bank and an NBFC. This article describes How are NBFCs different from Banks.

  3. WHAT IS A BANK? A bank is defined as an institution which is governed by the provisions of the Banking Regulation Act. Apart from this, the activities carried out by a Bank would include the following: Providing of Loans and Advances Opening Accounts of Customers Providing Cheques Accepting Deposits Any other activity which is allowed and regulated by the Reserve Bank of India

  4. WHAT IS AN NBFC? An NBFC is an abbreviation for Non- Banking Financial Company, which is primarily formed for carrying out financing activities. This type of company is registered under the provisions of the Companies Act, 1956 for carrying out activities related to finance. An NBFC carries out the following activities: Providing Loans and Advances Acquisition of Securities such as Shares and Debentures Leasing and Hire Purchase Chit Funds Business

  5. Differences between NBFC and Banks Accepting Deposits Strict Compliance Provision of Credit Cards Some NBFCs accept fixed deposits. A Bank even accepts these forms of deposits. However, it is important to classify the meaning of fixed deposits. In terms of rating, deposits of NBFCs are rated by reputed credit rating agencies such as CRISIL. Both NBFCs and Banks are regulated by the RBI. However the compliance requirements for NBFCs are more when compared to banks. When considering NBFC registration process, credit card facilities are not provided by a traditional NBFC. However, banks provide credit card facilities and other forms of electronic money which is available to consumers.

  6. THANK YOU https://enterslice.com/nbfc-registration

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