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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 |
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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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