Bank vs NBFC: Everything You Need to Know

Описание: Welcome to Businessbanking! In today’s in-depth episode, we explore one of the most critical topics in finance and banking: Bank vs NBFC—Everything You Need to Know. Whether you’re preparing for a banking exam, working in finance, or simply curious about the differences between banks and Non-Banking Financial Companies (NBFCs), this video is packed with clear explanations, practical insights, and answers to the most frequently asked questions.

What exactly is the difference between a traditional Bank and an NBFC?
Banks and NBFCs are both pillars of the Indian financial system, but they operate differently, serve distinct roles, and come under separate regulatory frameworks. Understanding these differences will help you make smarter financial decisions—whether opening an account, choosing a loan, investing, or planning your financial future.

In this video, you’ll learn about:

The definition and main functions of banks

What NBFCs are and how they operate

How regulation differs for banks and NBFCs

Which institutions can accept deposits, and which cannot

Why NBFCs cannot issue cheque books or provide demand deposit accounts

Deposit insurance and safety factors

Services offered exclusively by banks vs those by NBFCs

Differences in loan processing, interest rates, and eligibility criteria

Practical scenarios: When to choose a bank, and when an NBFC is better suited

Case studies on recent trends in banking and NBFC services

Answers to common myths and questions (e.g. Are NBFC loans safe? Can you use an NBFC for payments? Etc.)

Key features of banks:
Banks are regulated by the Reserve Bank of India (RBI) under the Banking Regulation Act. They accept savings, current, and fixed deposits; provide cheque books; are integrated into the payment and settlement system; and offer a wide range of products like accounts, loans, cards, and investments. Deposits in banks are covered by the Deposit Insurance and Credit Guarantee Corporation (DICGC) for added safety.

Key features of NBFCs:
NBFCs are companies registered under the Companies Act that provide financial services like loans, asset financing, and investments, but cannot accept demand deposits or issue cheques. NBFCs are important for specialized credit and faster loan processing—often catering to niche markets like vehicle finance, housing loans, and personal credit for underserved segments. NBFCs are regulated by RBI for their financial activities but do not offer deposit insurance.

Why this difference matters:
Choosing between a bank and an NBFC depends on your personal financial needs. Banks are ideal for broad, everyday banking services and secure deposits, while NBFCs are often preferred for quick, flexible loans and specific financial products. Knowing the difference can help you save money, minimize risk, and access the right financial resources at the right time.

Who should watch this video?

Students preparing for banking and finance exams

Working professionals in finance, accounting, and business development

Entrepreneurs and small business owners

Anyone interested in personal finance, loans, and banking basics

Curious minds who want to understand the foundations of the Indian financial system

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Disclaimer:
This video is for educational purposes only. Please consult your financial advisor or bank representative for specific recommendations. All information is based on current regulations as of October 2025.

Thank you for watching "Bank vs NBFC: Everything You Need to Know" on @Businessbanking1152 . Stay tuned for more deep dives—let’s grow your financial knowledge together!