Difference Between Bank and NBFC

Eli26 Jul, 2025Finance

Banks and NBFCs both offer financial services, but they operate differently. Banks are regulated by the RBI and can accept demand deposits, issue cheques, and provide a wide range of services. NBFCs, however, cannot accept demand deposits or issue cheques. They focus on lending, investment, and financial services like loans and leasing. While banks are more regulated, NBFCs are more flexible and often cater to niche segments.