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Which amongst the following are types of NBFCs as defined by RBI?- a)Asset Finance Company
- b)Investment Company
- c)Loan Company
- d)Insurance Business
- e)All of these
Correct answer is option 'E'. Can you explain this answer?
Which amongst the following are types of NBFCs as defined by RBI?
a)
Asset Finance Company
b)
Investment Company
c)
Loan Company
d)
Insurance Business
e)
All of these
|
Rohan Sengupta answered |
The types of NBFC’s classified by the reserve bank of India are:
(i) Asset Finance Company (AFC)
(ii) Investment Company (IC)
(iii) Loan Company (LC)
(iv) Infrastructure Finance Company (IFC)
(V) Systemically Important Core Investment Company (CIC-ND-SI)
(vi) Infrastructure Debt Fund: Non- Banking Financial Company (IDF-NBFC)
(vii) Non-Banking Financial Company-Micro Finance Institution (NBFC-MFI)
(viii) Non-Banking Financial Company – Factors (NBFC-Factors)
(ix) Mortgage Guarantee Companies (MGC)
(x) NBFC- Non-Operative Financial Holding Company (NOFHC)
(i) Asset Finance Company (AFC)
(ii) Investment Company (IC)
(iii) Loan Company (LC)
(iv) Infrastructure Finance Company (IFC)
(V) Systemically Important Core Investment Company (CIC-ND-SI)
(vi) Infrastructure Debt Fund: Non- Banking Financial Company (IDF-NBFC)
(vii) Non-Banking Financial Company-Micro Finance Institution (NBFC-MFI)
(viii) Non-Banking Financial Company – Factors (NBFC-Factors)
(ix) Mortgage Guarantee Companies (MGC)
(x) NBFC- Non-Operative Financial Holding Company (NOFHC)
Which of the following is considered as a Non-Banking Financial Company (NBFC)?- a)Equipment Leasing Company
- b)Hire purchase company
- c)Loan company
- d)Investment Company
- e)All of Above
Correct answer is option 'E'. Can you explain this answer?
Which of the following is considered as a Non-Banking Financial Company (NBFC)?
a)
Equipment Leasing Company
b)
Hire purchase company
c)
Loan company
d)
Investment Company
e)
All of Above
|
|
Rohan Sengupta answered |
- NBFCs provide a range of financial services to their clients. Types of services under Non-Banking Financial services include the following :
- Hire purchase services
- Leasing services
- Housing finance services
- Asset management services
- Venture capital services
- Mutual benefit finance services (Nidhi) banks.
- Since they perform the basic twin functions of attracting deposits from the public and are making loans, NBFCs are essentially banks, however, unlike commercial banks, they are not incorporated as a bank and are not governed by provisions of the Banking Regulation Act, 1949.
- The Reserve Bank of India is responsible for controlling the functioning of NBFCs.
- It is mandatory for an NBFC to get itself registered with the RBI as a deposit-taking company.
- For registration, they need to be a company (incorporated under the Companies Act, 1956) and should have a minimum NOF (Net Owned Fund) of rupees 2 crores.
Which of the following ATMs are owned and operated by NBFCs?- a)Brown label ATM
- b)Green Label ATM
- c)White label ATM
- d)Yellow Label ATM
- e)Pink label ATM
Correct answer is option 'C'. Can you explain this answer?
Which of the following ATMs are owned and operated by NBFCs?
a)
Brown label ATM
b)
Green Label ATM
c)
White label ATM
d)
Yellow Label ATM
e)
Pink label ATM
|
Arshiya Nair answered |
White label ATM:
- White label ATMs are owned and operated by Non-Banking Financial Companies (NBFCs).
- These ATMs are set up, owned, and operated by private non-bank companies that are authorized by the Reserve Bank of India (RBI) to operate ATMs.
- Examples of companies that operate white label ATMs in India include Tata Communications Payment Solutions Limited and Vakrangee Limited.
- White label ATMs are not branded with any bank's name and are meant to provide banking services to customers in areas where traditional bank ATMs are not available.
- These ATMs are usually located in retail outlets, gas stations, and other convenient locations.
Other types of ATMs:
- Brown label ATM: These ATMs are owned and operated by service providers on behalf of a bank. The ownership and maintenance of these ATMs lie with the bank, although the operation is outsourced to a third-party service provider.
- Green label ATM: These ATMs are used for sharing ATM network connectivity. They are not owned or operated by any specific bank or financial institution.
- Yellow label ATM: These ATMs are used for sharing ATM network connectivity. They are not owned or operated by any specific bank or financial institution.
- Pink label ATM: These ATMs are owned and operated by companies that are not regulated by the RBI. They are typically set up by retailers or other businesses to provide cash withdrawal services to customers.
- White label ATMs are owned and operated by Non-Banking Financial Companies (NBFCs).
- These ATMs are set up, owned, and operated by private non-bank companies that are authorized by the Reserve Bank of India (RBI) to operate ATMs.
- Examples of companies that operate white label ATMs in India include Tata Communications Payment Solutions Limited and Vakrangee Limited.
- White label ATMs are not branded with any bank's name and are meant to provide banking services to customers in areas where traditional bank ATMs are not available.
- These ATMs are usually located in retail outlets, gas stations, and other convenient locations.
Other types of ATMs:
- Brown label ATM: These ATMs are owned and operated by service providers on behalf of a bank. The ownership and maintenance of these ATMs lie with the bank, although the operation is outsourced to a third-party service provider.
- Green label ATM: These ATMs are used for sharing ATM network connectivity. They are not owned or operated by any specific bank or financial institution.
- Yellow label ATM: These ATMs are used for sharing ATM network connectivity. They are not owned or operated by any specific bank or financial institution.
- Pink label ATM: These ATMs are owned and operated by companies that are not regulated by the RBI. They are typically set up by retailers or other businesses to provide cash withdrawal services to customers.
What is the new eligibility limit for NBFCs for debt recovery under the SARFAESI Act ?- a)Assests size 100 crore
- b)Assets size 50 crore
- c)Assests size 10 crore
- d)Assests size 125 crore
- e)Assests size 150 crore
Correct answer is option 'A'. Can you explain this answer?
What is the new eligibility limit for NBFCs for debt recovery under the SARFAESI Act ?
a)
Assests size 100 crore
b)
Assets size 50 crore
c)
Assests size 10 crore
d)
Assests size 125 crore
e)
Assests size 150 crore
|
|
Ritika Choudhury answered |
- Non-Banking Financial Companies (NBFCs) eligibility limit for debt recovery under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest (Sarfaesi) Act 2002 has been reduced from Rs 500 crore to Rs 100 crore in asset size and Rs 1 crore to Rs 50 lakh in loan size.
- The Act allows lenders to auction properties of defaulters to recover their dues.
- The government has proposed to provide credit guarantee for the NBFC sector that has been facing liquidity crisis since the burst of the IL&FS (Infrastructure Leasing & Financial Services Limited is an Indian infrastructure development and finance company) scam.
- The Reserve Bank of India’s report on banking trends for 2018-19 showed the gross non-performing assets ratio of banks has increased to 6.1% of assets from 5.3 per cent in the last year.
- According to a note from rating agency Crisil, the reduction for applicability under Sarfaesi Act is a positive action and will bring an additional 12-15 per cent of NBFCs’ loan against property, which stands at around Rs 1 lakh crore as of March 2019, under the Sarfaesi act.
Which of the following statements are true in regards NBFC?- a)A NBFC can accept demand deposits
- b)A NBFC can issue cheques
- c)Credit Guarantee Corporation is available to depositors of NBFCs
- d)A NBFC can extend loans and advances
- e)None of the above
Correct answer is option 'D'. Can you explain this answer?
Which of the following statements are true in regards NBFC?
a)
A NBFC can accept demand deposits
b)
A NBFC can issue cheques
c)
Credit Guarantee Corporation is available to depositors of NBFCs
d)
A NBFC can extend loans and advances
e)
None of the above
|
|
Ritika Choudhury answered |
- 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:
- NBFC cannot accept demand deposits;
- NBFCs do not form part of the payment and settlement system and hence cannot issue cheques
- Credit Guarantee Corporation is not available to depositors of NBFCs, unlike in case of banks.
A Non-Banking Financial Company (NBFC) is a company registered under _________.- a)RBI Act 1932
- b)Companies Act, 1956
- c)Banking Regulation Act, 1949
- d)All of these
- e)None of these
Correct answer is option 'B'. Can you explain this answer?
A Non-Banking Financial Company (NBFC) is a company registered under _________.
a)
RBI Act 1932
b)
Companies Act, 1956
c)
Banking Regulation Act, 1949
d)
All of these
e)
None of these
|
|
Rohan Sengupta answered |
A Non-Banking Financial Company (NBFC) is a company registered under Companies Act, 1956.
The appointment of a Banking Ombudsman is made for a period of ________.- a)2 yrs
- b)1 yr
- c)3 yrs
- d)4 yrs
- e)5 yrs
Correct answer is option 'C'. Can you explain this answer?
The appointment of a Banking Ombudsman is made for a period of ________.
a)
2 yrs
b)
1 yr
c)
3 yrs
d)
4 yrs
e)
5 yrs
|
|
Ritika Choudhury answered |
The appointment of a Banking Ombudsman is made for a period of not exceeding 3 years at a time. He is eligible for reappointment.
The Reserve Bank of India (RBI) has introduced the prompt corrective action (PCA) framework for non-banking financial companies (NBFCs). The PCA framework for NBFCs will come into effect from which month?- a)January 2022
- b)March 2022
- c)July 2022
- d)October 2022
- e)December 2022
Correct answer is option 'D'. Can you explain this answer?
The Reserve Bank of India (RBI) has introduced the prompt corrective action (PCA) framework for non-banking financial companies (NBFCs). The PCA framework for NBFCs will come into effect from which month?
a)
January 2022
b)
March 2022
c)
July 2022
d)
October 2022
e)
December 2022
|
|
Ritika Choudhury answered |
- The Reserve Bank of India (RBI) has introduced the prompt corrective action (PCA) framework for non-banking financial companies (NBFCs).
- The new NBFC framework will be applicable to all deposit-taking NBFCs in the middle, upper and top layers.
- The PCA framework for NBFCs will come into effect from October 1, 2022, based on the financial position of NBFCs on or after March 31, 2022.
NBFC’s are regulated in India by:- a)Reserve Bank of India
- b)State Bank of India
- c)Insurance Regulatory and Development Authority
- d)Prime Minister Office
- e)Securities and Exchange Board of India
Correct answer is option 'A'. Can you explain this answer?
NBFC’s are regulated in India by:
a)
Reserve Bank of India
b)
State Bank of India
c)
Insurance Regulatory and Development Authority
d)
Prime Minister Office
e)
Securities and Exchange Board of India
|
Kavya Saxena answered |
A NBFC is usually regulated by Reserve Bank of India subject to some exemptions which are mentioned below.
There are various companies that are not regulated by RBI:
There are various companies that are not regulated by RBI:
- Housing Finance Companies
- Merchant Banking Companies
- Stock Exchanges
- Companies engaged in the business of stock-broking/sub-broking
- Venture Capital Fund Companies
- Nidhi Companies
- Insurance companies and
- Chit Fund Companies
These all are NBFCs but they have been exempted from the requirement of registration under Section 45-IA of the RBI Act, 1934 subject to certain conditions.
- Housing Finance Companies are regulated by National Housing Bank
- Merchant Banker/Venture Capital Fund Company/stock-exchanges/stock brokers/sub-brokers are regulated by Securities and Exchange Board of India
- Insurance companies are regulated by Insurance Regulatory and Development Authority
- Chit Fund Companies are regulated by the respective State Governments
- Nidhi Companies are regulated by Ministry of Corporate Affairs, Government of India.
Companies that do financial business but are regulated by other regulators are given specific exemption by the Reserve Bank from its regulatory requirements for avoiding duality of regulation.
Consider the following statements regarding Non-Banking Financial Companies. - NBFCs do not form part of the payment and settlement system and cannot issue cheques drawn on itself.
- NBFCs cannot accept demand deposits.
- Deposit insurance facility of Deposit Insurance and Credit Guarantee Corporation is not available to depositors of NBFCs.
Which of the above statements is/are correct?- a)Only 1
- b)1 and 3 only
- c)2 and 3 only
- d)1, 2 and 3
- e)1 and 2 only
Correct answer is option 'D'. Can you explain this answer?
Consider the following statements regarding Non-Banking Financial Companies.
- NBFCs do not form part of the payment and settlement system and cannot issue cheques drawn on itself.
- NBFCs cannot accept demand deposits.
- Deposit insurance facility of Deposit Insurance and Credit Guarantee Corporation is not available to depositors of NBFCs.
Which of the above statements is/are correct?
a)
Only 1
b)
1 and 3 only
c)
2 and 3 only
d)
1, 2 and 3
e)
1 and 2 only
|
Ishan Choudhury answered |
- NBFCs lend and make investments and hence their activities are akin to that of banks; however, there are a few differences as given below:
- NBFC cannot accept demand deposits; (The NBFCs are allowed to accept/renew public deposits for a minimum period of 12 months and a maximum period of 60 months. They cannot accept deposits repayable on demand.) Hence, statement 2 is correct.
- NBFCs do not form part of the payment and settlement system and cannot issue cheques drawn on itself. Hence, statement 1 is correct.
- The deposit insurance facility of Deposit Insurance and Credit Guarantee Corporation is not available to depositors of NBFCs, unlike in case of banks. Hence, statement 3 is correct.
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