Non Banking Financial Companies (NBFC)

Non-Banking Financial Company – NBFC

NBFCs are financial institutions that provides almost similar banking services (like providing loans and credits) but doesn’t possess banking license. So there are some limitation / restriction in its services.
NBFCs are registered under the Companies Act, 1956, whereas banks are regulated under Banking Regulation Act, 1949.

Differences between a Bank and an NBFC

Full Course Videos in Hindi English
Check Here
jaiib ppb short notes part 1
Check Here
jaiib exam free study material
Check here
jaiib study material pdf notes 2022
Get Tests Here
how to prepare for ppb
Check Here
  • It cannot accept Demand Deposits from public. If someone want to invest in an NBFC, it could have some maturity (like happens in time deposits). Though some special permission is given to LIC and GIC by RBI. These two NBFC can take demand deposits.
  • It is not a part of the Payments and Settlement System of India.
  • It cannot issue cheques drawn on itself.
  • Deposits are not insured or covered under Deposit Insurance and Credit Guarantee Corporation (DICGC), which generally covers the bank accounts.

White label ATM (WLA) – NBFC ATMs

Most of the ATMs belong to banks, but the cash dispensing machines that are owned and operated by NBFCs are called White Label ATMs. Surely they charge extra money for providing this service, and generally operates in semi-urban and rural areas (tier III to VI areas)

NBFCs that provides WLA – Tata Communications Payment Solutions, Prizm Payment Services Pvt. Ltd, Muthoot Finance Ltd, Vakrangee Ltd, BTI Payments Pvt. Ltd., Srei Infrastructure Finance Ltd, RiddiSiddhi Bullions Ltd. (total 7 as of May 2014)

NBFC businesses –
  • loans and advances
  • acquisition of shares, stocks, bonds
  • insurance, etc.

Accounting & Finance for Banking

Principles & Practices of Banking Module E Pdf

Module E PPB ePDFs available in our android app. Get them all at

Accounting and Finance for Banking Module A Pdf

Accounting and finance for bankers all ePDFs are available in our an app. Get them all at

Accounting and Finance for Banking Module A Pdf

Accounting and finance for bankers all ePDFs are available in our an app. Get them all at

Leave a reply

Please enter your comment!
Please enter your name here

Learning Sessions
Btech, JAIIB CAIIB and a tutor. Have taken more than 900+ hours online classes with more than 1,25,000 students


Free Live Classes


More from author

Principles and Practices of Banking – PPB Most important Questions

Hello friends, today in this article by the learning sessions we will share important questions and memory called topics of PPB that is principles...

JAIIB Exam Legal and Regulatory aspects of Banking Important Questions in Hindi Legal and regulatory aspects of Banking previous year questions for JAIIB exam are covered in this video. These questions are very important for legal...

Accounting and Finance Exam in One Attempt

Jaiib exam dates have already been announced by the IIBF. This is high time for preparing JAIIB. If you have also applied for JAIIB...

What next after CAIIB? IIBF Certifications at a Glance

What next after CAIIB? 15 Certificate Exams in Finance and Banking useful for Bankers:: Introduction As per the IBA settlement, bankers who have passed JAIIB and CAIIB...