1.

Which of the following statements are true in regards NBFC?1). A NBFC can accept demand deposits2). A NBFC can issue cheques3). Credit Guarantee Corporation is available to depositors of NBFCs4). A NBFC can extend loans and advances

Answer»

NBFC’s lend and make investments and HENCE their activities are similar to that of banks; however there are a few differences as GIVEN below:$

i. NBFC cannot ACCEPT demand deposits;$

ii. NBFCS do not form part of the payment and settlement system and hence cannot issue cheques$

iii. Credit Guarantee Corporation is not available to DEPOSITORS of NBFCs, unlike in case of banks.$



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