Differences between non banking financial institutions and banking institutions?

A Bank is an organization that accepts customer cash deposits and then provides financial services like bank accounts, loans, share trading account, mutual funds, etc.

A NBFC (Non Banking Financial Company) is an organization that does not accept customer cash deposits but provides all financial services except bank accounts.

a) A bank interacts directly with customers while an NBFI

interacts with banks and governments

(b) A bank indulges in a number of activities relating to

finance with a range of customers, while an NBFI is mainly

concerned with the term loan needs of large enterprises

(c) A bank deals with both internal and international

customers while an NBFI is mainly concerned with the

finances of foreign companies

(d) A bank's man interest is to help in business

transactions and savings/ investment activities while an

NBFI's main interest is in the stabilization of the currency