Question

    Which of the following functions cannot be performed by

    NBFCs?
    A Providing loans Correct Answer Incorrect Answer
    B Making investments Correct Answer Incorrect Answer
    C Accepting demand deposits Correct Answer Incorrect Answer
    D Acquisition of shares Correct Answer Incorrect Answer

    Solution

    NBFCs do not form part of the payment and settlement system and cannot issue cheques drawn on itself; The deposit insurance facility of Deposit Insurance and Credit Guarantee Corporation is not available to depositors of NBFCs. NBFCs are not engaged in agricultural activities or industrial activities. 

    Practice Next

    Relevant for Exams: