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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

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14y ago
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Wiki User

11y ago

Financial information has to do with money: income, debts, credit cards, banking, etc. Non-financial information does not have to do with money: where you live, social security number, drivers license number, etc.

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13y ago

1.financial institution accepts deposits while non financial institution does not accept deposits

2. financial institutions deal with customers directly while non financial institution deal with banks and governments

3. financial institution takes part in all activities concerning finance while non financial institution is concerned with loans needs of large enterprises.

4. financial institution deal with both internal and international customers while non financial institution concerned with finances of foreign companies.

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Wiki User

14y ago

The main difference is the fact that:

  • Banks accept customer deposits whereas
  • NBFC's do not accept customer deposits

Both offer all other financial services like loans, share trading, insurance etc but NBFC's do it without accepting customer cash deposits.

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Wiki User

9y ago

A bank is a financial institution but a financial institution is not necessarily a bank. A bank does a few basic functions where a financial institution is a much larger organization.

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