1.

What are the differences and similarities between banks and non – banking financial institutions?

Answer»

Similarities :

  • Banks; Banks accept deposits from the public and grant loans to the needy subject to conditions. They operate on the basis of the general guidelines and conditions set by the Reserve Bank of India.
  • Non banking financial institutions : They do basic banking functions like accepting deposits and lending loans. They also operate under the guidelines of RBI. 

 Differences :

  • Banks provide services like withdrawal of cash by cheque, mail transfer and locker facilities. 
  • Non banking financial institutions do not provide services like withdrawal of cash by cheque, mail transfer and locker facilities.


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