• Banks are authorized under the government financial intermediary that purpose at providing banking services to the general people. Whereas NBFCs provides banking services to people without carrying a bank license.
• An NBFC is incorporated under the Companies Act whereas a bank is registered under Banking Regulation Act, 1949.
• NBFCs are not eligible to accept deposits which are repayable on demand whereas banks which accept demand deposits.
• NBFC allows foreign Investments up to 100%. Whereas in case of private sector banks they are eligible for foreign investment, but which would be not more than 74%.
