The difference between a bank and a Non-Banking Financial Institution (NBFI) is that

(a)

a bank interacts directly with customers while an NBFI interacts with banks and governments

(b)

a bank indulges in a number of activities relating to finance with a range of customers, while an NBFI is mainly concerned with the term loan needs of large enterprises

(c)

a bank deals with both internal and international customers while an NBFI is mainly concerned with the finances of foreign companies

(d)

a bank’s main interest is to help in business transactions and savings/ investment activities while an NBFI’s main interest is in the stabilisation of the currency