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    Question

    Which of the following statements is/are true with respect to the Non-Banking Financial Companies ?

    I. A Non-Banking Financial Company (NBFC) is a company registered under the Companies Act, 1956 involved  in the business of loans and advances, acquisition of shares/stocks/bonds/debentures/securities issued by Government or local authority or other marketable securities of a like nature, leasing, hire-purchase, insurance business, chit business

    II. NBFC cannot accept demand deposits.

    III. Deposit insurance facility of Deposit Insurance and Credit Guarantee Corporation is available to depositors of NBFCs.

    A Only I Correct Answer Incorrect Answer
    B Only I & II Correct Answer Incorrect Answer
    C Only II & III Correct Answer Incorrect Answer
    D Only III Correct Answer Incorrect Answer
    E None of these Correct Answer Incorrect Answer

    Solution

    A Non-Banking Financial Company (NBFC) is a company registered under the Companies Act, 1956 involved  in the business of loans and advances, acquisition of shares/stocks/bonds/debentures/securities issued by Government or local authority or other marketable securities of a like nature, leasing, hire-purchase, insurance business, chit businessNBFC cannot accept demand deposits.Deposit insurance facility of Deposit Insurance and Credit Guarantee Corporation is not available to depositors of NBFCs.

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