Difference between banks & NBFCs

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NBFCs are doing functions akin to that of banks, however there are a few differences:

(i) a NBFC cannot accept demand deposits (demand deposits are funds deposited at a depository institution that are payable on demand -- immediately or within a very short period -- like your current or savings accounts.)
(ii)deposit insurance facility of DICGC is not available for NBFC depositors unlike in case of banks. and
(iii) it is not a part of the payment and settlement system and as such cannot issue cheques to its customers;