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  • Basis For Comparison

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    Shalini Singh IPSA
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    NBFCs are non-banking financial companies that provide banking services without a bank license, incorporated under the Companies Act 1956, and do not accept demand deposits or participate in payment and settlement systems like banks. Banks are incorporated under the Banking Regulation Act of 1949, accept demand deposits, are an integral part of payment and settlement systems, must maintain reserve ratios, provide deposit insurance and credit creation, and offer transaction services.

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    BASIS FOR COMPARISON

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    NBFCs are non-banking financial companies that provide banking services without a bank license, incorporated under the Companies Act 1956, and do not accept demand deposits or participate in payment and settlement systems like banks. Banks are incorporated under the Banking Regulation Act of 1949, accept demand deposits, are an integral part of payment and settlement systems, must maintain reserve ratios, provide deposit insurance and credit creation, and offer transaction services.

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    © All Rights Reserved
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    41 views1 page

    Basis For Comparison

    Uploaded by

    Shalini Singh IPSA
    NBFCs are non-banking financial companies that provide banking services without a bank license, incorporated under the Companies Act 1956, and do not accept demand deposits or participate in payment and settlement systems like banks. Banks are incorporated under the Banking Regulation Act of 1949, accept demand deposits, are an integral part of payment and settlement systems, must maintain reserve ratios, provide deposit insurance and credit creation, and offer transaction services.

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    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
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    of 1

    BASIS FOR

    NBFC BANK
    COMPARISON

    Meaning An NBFC is a company Bank is a government


    that provides banking authorized financial
    services to people intermediary that aims at
    without holding a bank providing banking services to
    license. the general public.

    Incorporated Companies Act 1956 Banking Regulation Act, 1949


    under

    Demand Deposit Not Accepted Accepted

    Foreign Allowed up to 100% Allowed up to 74% for private


    Investment sector banks

    Payment and Not a part of system. Integral part of the system.


    Settlement system

    Maintenance of Not required Compulsory


    Reserve Ratios

    Deposit insurance Not available Available


    facility

    Credit creation NBFC do not create Banks create credit.


    credit.

    Transaction Not provided by NBFC. Provided by banks.


    services

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