What is the difference between a financial institution and bank?

The non-banking financial institution which comes under the category of financial institutions cannot accept deposits into savings and demand deposit accounts. A bank is a financial institution which can accept deposits into various savings and demand deposit accounts, and give out loans. You can read about the Types of Banks in India – Category and Functions of Banks in India in the given link.

Further readings:

  1. Types of Non Banking Financial Institutions India
  2. RBI – Reserve Bank of India [UPSC Indian Economy Notes]

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