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Regarding the Non-Banking Finance Companies (NBFCs) consider the following statements:
1. NBFCs are restricted from accepting demand deposits from the public.
2. NBFCs form an important part of the payment and settlement system.
3. NBFCs primarily finance their operations through a mix of market borrowing and bank loans.
How many of the statements given above are correct?
  • a)
    Only one
  • b)
    Only two
  • c)
    All three
  • d)
    None
Correct answer is option 'B'. Can you explain this answer?
Most Upvoted Answer
Regarding the Non-Banking Finance Companies (NBFCs) consider the follo...
Non-Banking Finance Companies (NBFCs):
  • An NBFC, registered under the Companies Act, 1956, engages in various financial activities such as loans, investments in securities, leasing, insurance. It excludes institutions whose primary business falls under agriculture, industry, goods trading, services, or immovable property trading. NBFCs are restricted from accepting demand deposits from the public, unlike banks, which commonly accept these types of deposits that can be withdrawn on demand without prior notice. Hence, statement 1 is correct.
  • Unlike banks, NBFCs do not form part of the payment and settlement system. They are unable to issue cheques drawn on themselves, a standard practice offered by banks. Hence, statement 2 is not correct.
  • NBFCs primarily finance their operations through a mix of market borrowing and bank loans. Hence, statement 3 is correct.
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Regarding the Non-Banking Finance Companies (NBFCs) consider the following statements:1. NBFCs are restricted from accepting demand deposits from the public.2. NBFCs form an important part of the payment and settlement system.3. NBFCs primarily finance their operations through a mix of market borrowing and bank loans.How many of the statements given above are correct?a)Only oneb)Only twoc)All threed)NoneCorrect answer is option 'B'. Can you explain this answer?
Question Description
Regarding the Non-Banking Finance Companies (NBFCs) consider the following statements:1. NBFCs are restricted from accepting demand deposits from the public.2. NBFCs form an important part of the payment and settlement system.3. NBFCs primarily finance their operations through a mix of market borrowing and bank loans.How many of the statements given above are correct?a)Only oneb)Only twoc)All threed)NoneCorrect answer is option 'B'. Can you explain this answer? for UPSC 2024 is part of UPSC preparation. The Question and answers have been prepared according to the UPSC exam syllabus. Information about Regarding the Non-Banking Finance Companies (NBFCs) consider the following statements:1. NBFCs are restricted from accepting demand deposits from the public.2. NBFCs form an important part of the payment and settlement system.3. NBFCs primarily finance their operations through a mix of market borrowing and bank loans.How many of the statements given above are correct?a)Only oneb)Only twoc)All threed)NoneCorrect answer is option 'B'. Can you explain this answer? covers all topics & solutions for UPSC 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Regarding the Non-Banking Finance Companies (NBFCs) consider the following statements:1. NBFCs are restricted from accepting demand deposits from the public.2. NBFCs form an important part of the payment and settlement system.3. NBFCs primarily finance their operations through a mix of market borrowing and bank loans.How many of the statements given above are correct?a)Only oneb)Only twoc)All threed)NoneCorrect answer is option 'B'. Can you explain this answer?.
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