NBFC

Non Banking Financial Companies (NBFC)
NBFCs are financial institutions that provides almost similar banking services (like providing loans and credits) but doesn't possess banking license. So there are some limitation / restriction in its services.
NBFCs are registered under the Companies Act, 1956, whereas banks are regulated under Banking Regulation Act, 1949.

Differences between a Bank and an NBFC

• It cannot accept Demand Deposits from public. If someone want to invest in an NBFC, it could have some maturity (like happens in time deposits). Though some special permission is given to LIC and GIC by RBI. These two NBFC can take demand deposits.
• It is not a part of the Payments and Settlement System of India.
• It cannot issue cheques drawn on itself.
• Deposits are not insured or covered under Deposit Insurance and Credit Guarantee Corporation (DICGC), which generally covers the bank accounts.

White Label ATM (WLA) - NBFC ATMs
Most of the ATMs belong to banks, but the cash dispensing machines that are owned and operated by NBFCs are called White Label ATMs. Surely they charge extra money for providing this service, and generally operates in semi-urban and rural areas (tier III to VI areas)

NBFCs that provides WLA - Tata Communications Payment Solutions, Prizm Payment Services Pvt. Ltd, Muthoot Finance Ltd, Vakrangee Ltd, BTI Payments Pvt. Ltd., Srei Infrastructure Finance Ltd, RiddiSiddhi Bullions Ltd. (total 7 as of May 2014)

NBFC businesses -

• loans and advances
• acquisition of shares, stocks, bonds
• insurance, etc.