Why LIC is not termed as a Bank?

LIC is not a bank as it does not accept chequeable deposits from the public although if performs the function of lending money.

Additional Information:

However, LIC is a financial institution, But not a bank.

For a financial institution to be a bank, it must accept the demand (chequeable) deposits and advance the loans to the general public.

In other words, a financial institution must open the current and savings accounts of the public.

But LIC only advances the loans to the general public.

Note:- nowadays LIC also accepts the demand deposits. But it does not accept demand (chequeable) deposits.