- Non-Banking Financial Companies (NBFCs) are financial institutions that provide banking services but do not hold a banking license. - Unlike banks, NBFCs cannot accept demand deposits (deposits withdrawable by cheque, draft, order or otherwise). They can accept time deposits (like fixed deposits). - NBFCs are not part of the payment and settlement system, and they cannot issue cheques drawn on themselves. - NBFCs are permitted to give loans, make investments in securities, and borrow funds, including from banks.