A non banking financial institutions is also called as (NBFC). NBFC work to accept deposit and and provide loan and advance to the customers. 

But certain work which NBFC cannot do such are as follows:

1.Accepting demand deposit.

2.Issuing cheques.   

NBFC works under the regulation of reserve bank of india. And also get registered under compsnies act 2013. If any company wants to convert ints NBFC then they want licience fro. Reserve bank of india. That company have also net owned fund of rupees 22 crore

There are different types of NBFC.

1. assets finance company - they finance phyiscal assets including auto mobile and tractor.
2. Infrastructure finance company- they finance and give laon to infrastructure company.
3. Micro finance company- they provide loan to rural and semi urban people who have low income.
4. Core investment company- they carrying of business of acquisition of shares and securities.
5. Investment and credit company- they providing finance as loans and advance to people.
6. And many more other catogaries are there

There are some advantages of NBFC:

1.The intrest rate charge by NBFC is low are compared to normal bank.

2.The procedure of geeting loan is easy, simple and fast as compared to bank.

3.The bank generally not provide loan to low credit score income people. But NBFC provide loan to low credit score people.

4. In certain cases NBFC gave loan without collateral security to people.

Difference in bank and NBFC.

1. Bank is authorised by RBI and provide banking services. Where as NBFC is company engaged in the business of loan and advance.
2. Banks can accept demand deposit whereas NBFCc cannot accept demand deposit.
3. Banks provide varities of transaction whereas NBFC do not provide such varities of transaction.
4. Bank are required to maintain reserve ratio whereas NBFC do not require reserve ratio.

Reserve bank have also power to cancel the certificate of NBFC.

1. When such NBFC carry any business which is restricted.
2. If they do not compel with certain conditions from time to time.
3. Fails to full fill certain conditions as per reserve bank of india.
4. And may impose penalty to NBFC.

There are required to file certain returns  and comply with all conditions as given by reserve bank of india from time to time.

Conclusion: this NBFC concept is slowly growing throughout the country because they provide any service to people and company for personal and commercial purposes. And benefits to customers. Customers also enjoy to avil the service of non banking financial institutions