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Which of the following statements are correct regarding the parameters governing Deposit Taking NBFCs (NBFC-Ds) and their operations?
(l) NBFC-Ds are permitted to accept and renew public deposits for durations ranging from 12 to 60 months but are not repayable on demand.
(II) NBFC-Ds are allowed to offer interest rates higher than the ceiling rate set by RBI.
(III) The interest on deposits with NBFC-Ds can be paid or compounded at rests shorter than monthly rests.
(IV) NBFC-Ds are permitted to offer gifts, incentives, or additional benefits to depositors
(l) NBFC-Ds are permitted to accept and renew public deposits for durations ranging from 12 to 60 months but are not repayable on demand.
(II) NBFC-Ds are allowed to offer interest rates higher than the ceiling rate set by RBI.
(III) The interest on deposits with NBFC-Ds can be paid or compounded at rests shorter than monthly rests.
(IV) NBFC-Ds are permitted to offer gifts, incentives, or additional benefits to depositors
- a)l and ll
- b)ll and lll
- c)l and lll
- d)l , ll and lll
Correct answer is option 'C'. Can you explain this answer?
Verified Answer
Which of the following statements are correct regarding the parameters...
(l) NBFC-Ds are permitted to accept and renew public deposits for durations ranging from 12 to 60 months but are not repayable on demand-. This statement is correct. NBFC-Ds are allowed to accept and renew public deposits for specific durations, ensuring they are not repayable on demand.
(III) The interest on deposits with NBFC-Ds can be paid or compounded at rests shorter than monthly rests.-This statement is correct. The interest on deposits with NBFC-Ds can be calculated and either paid or compounded, but this cannot be done at rests shorter than monthly intervals.
Incorrect Statements:
(II) NBFC-Ds are allowed to offer interest rates higher than the ceiling rate set by RBI.
- This statement is incorrect. NBFC-Ds are restricted from offering interest rates that exceed a certain ceiling rate prescribed by the RBI.
(IV) NBFC-Ds are permitted to offer gifts, incentives, or additional benefits to depositors.- This statement is incorrect. NBFC-Ds are not allowed to provide gifts, incentives, or any supplementary advantages to their depositors
Most Upvoted Answer
Which of the following statements are correct regarding the parameters...
Understanding NBFC-D Regulations
Deposit Taking Non-Banking Financial Companies (NBFC-Ds) operate under specific guidelines set by the Reserve Bank of India (RBI). Here’s a breakdown of the statements regarding their operations:
Statement I: Duration of Public Deposits
- NBFC-Ds are indeed permitted to accept and renew public deposits for durations ranging from 12 to 60 months.
- These deposits are not repayable on demand, which ensures stability in funding.
Statement II: Interest Rates
- This statement is incorrect. NBFC-Ds are not allowed to offer interest rates higher than the ceiling rate set by the RBI.
- The RBI regulates these rates to protect depositors and maintain financial stability.
Statement III: Interest Payment Frequency
- This statement is correct. NBFC-Ds can pay or compound interest on deposits using rests shorter than monthly rests.
- This flexibility allows NBFC-Ds to attract more depositors with varying preferences.
Statement IV: Gifts and Incentives
- This statement is also incorrect. NBFC-Ds are prohibited from offering gifts, incentives, or additional benefits to depositors.
- Such practices could lead to unhealthy competition and risk to depositors.
Conclusion
Based on the analysis:
- Correct options: I and III.
- Hence, the correct answer is option 'C' (I and III). This highlights the regulations that ensure the stability and integrity of NBFC-D operations while safeguarding depositor interests.
Deposit Taking Non-Banking Financial Companies (NBFC-Ds) operate under specific guidelines set by the Reserve Bank of India (RBI). Here’s a breakdown of the statements regarding their operations:
Statement I: Duration of Public Deposits
- NBFC-Ds are indeed permitted to accept and renew public deposits for durations ranging from 12 to 60 months.
- These deposits are not repayable on demand, which ensures stability in funding.
Statement II: Interest Rates
- This statement is incorrect. NBFC-Ds are not allowed to offer interest rates higher than the ceiling rate set by the RBI.
- The RBI regulates these rates to protect depositors and maintain financial stability.
Statement III: Interest Payment Frequency
- This statement is correct. NBFC-Ds can pay or compound interest on deposits using rests shorter than monthly rests.
- This flexibility allows NBFC-Ds to attract more depositors with varying preferences.
Statement IV: Gifts and Incentives
- This statement is also incorrect. NBFC-Ds are prohibited from offering gifts, incentives, or additional benefits to depositors.
- Such practices could lead to unhealthy competition and risk to depositors.
Conclusion
Based on the analysis:
- Correct options: I and III.
- Hence, the correct answer is option 'C' (I and III). This highlights the regulations that ensure the stability and integrity of NBFC-D operations while safeguarding depositor interests.
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Which of the following statements are correct regarding the parameters governing Deposit Taking NBFCs (NBFC-Ds) and their operations?(l) NBFC-Ds are permitted to accept and renew public deposits for durations ranging from 12 to 60 months but are not repayable on demand.(II) NBFC-Ds are allowed to offer interest rates higher than the ceiling rate set by RBI.(III) The interest on deposits with NBFC-Ds can be paid or compounded at rests shorter than monthly rests.(IV) NBFC-Ds are permitted to offer gifts, incentives, or additional benefits to depositorsa)l and llb)ll and lllc)l and llld)l , ll and lllCorrect answer is option 'C'. Can you explain this answer?
Question Description
Which of the following statements are correct regarding the parameters governing Deposit Taking NBFCs (NBFC-Ds) and their operations?(l) NBFC-Ds are permitted to accept and renew public deposits for durations ranging from 12 to 60 months but are not repayable on demand.(II) NBFC-Ds are allowed to offer interest rates higher than the ceiling rate set by RBI.(III) The interest on deposits with NBFC-Ds can be paid or compounded at rests shorter than monthly rests.(IV) NBFC-Ds are permitted to offer gifts, incentives, or additional benefits to depositorsa)l and llb)ll and lllc)l and llld)l , ll and lllCorrect answer is option 'C'. Can you explain this answer? for Bank Exams 2025 is part of Bank Exams preparation. The Question and answers have been prepared according to the Bank Exams exam syllabus. Information about Which of the following statements are correct regarding the parameters governing Deposit Taking NBFCs (NBFC-Ds) and their operations?(l) NBFC-Ds are permitted to accept and renew public deposits for durations ranging from 12 to 60 months but are not repayable on demand.(II) NBFC-Ds are allowed to offer interest rates higher than the ceiling rate set by RBI.(III) The interest on deposits with NBFC-Ds can be paid or compounded at rests shorter than monthly rests.(IV) NBFC-Ds are permitted to offer gifts, incentives, or additional benefits to depositorsa)l and llb)ll and lllc)l and llld)l , ll and lllCorrect answer is option 'C'. Can you explain this answer? covers all topics & solutions for Bank Exams 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Which of the following statements are correct regarding the parameters governing Deposit Taking NBFCs (NBFC-Ds) and their operations?(l) NBFC-Ds are permitted to accept and renew public deposits for durations ranging from 12 to 60 months but are not repayable on demand.(II) NBFC-Ds are allowed to offer interest rates higher than the ceiling rate set by RBI.(III) The interest on deposits with NBFC-Ds can be paid or compounded at rests shorter than monthly rests.(IV) NBFC-Ds are permitted to offer gifts, incentives, or additional benefits to depositorsa)l and llb)ll and lllc)l and llld)l , ll and lllCorrect answer is option 'C'. Can you explain this answer?.
Which of the following statements are correct regarding the parameters governing Deposit Taking NBFCs (NBFC-Ds) and their operations?(l) NBFC-Ds are permitted to accept and renew public deposits for durations ranging from 12 to 60 months but are not repayable on demand.(II) NBFC-Ds are allowed to offer interest rates higher than the ceiling rate set by RBI.(III) The interest on deposits with NBFC-Ds can be paid or compounded at rests shorter than monthly rests.(IV) NBFC-Ds are permitted to offer gifts, incentives, or additional benefits to depositorsa)l and llb)ll and lllc)l and llld)l , ll and lllCorrect answer is option 'C'. Can you explain this answer? for Bank Exams 2025 is part of Bank Exams preparation. The Question and answers have been prepared according to the Bank Exams exam syllabus. Information about Which of the following statements are correct regarding the parameters governing Deposit Taking NBFCs (NBFC-Ds) and their operations?(l) NBFC-Ds are permitted to accept and renew public deposits for durations ranging from 12 to 60 months but are not repayable on demand.(II) NBFC-Ds are allowed to offer interest rates higher than the ceiling rate set by RBI.(III) The interest on deposits with NBFC-Ds can be paid or compounded at rests shorter than monthly rests.(IV) NBFC-Ds are permitted to offer gifts, incentives, or additional benefits to depositorsa)l and llb)ll and lllc)l and llld)l , ll and lllCorrect answer is option 'C'. Can you explain this answer? covers all topics & solutions for Bank Exams 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Which of the following statements are correct regarding the parameters governing Deposit Taking NBFCs (NBFC-Ds) and their operations?(l) NBFC-Ds are permitted to accept and renew public deposits for durations ranging from 12 to 60 months but are not repayable on demand.(II) NBFC-Ds are allowed to offer interest rates higher than the ceiling rate set by RBI.(III) The interest on deposits with NBFC-Ds can be paid or compounded at rests shorter than monthly rests.(IV) NBFC-Ds are permitted to offer gifts, incentives, or additional benefits to depositorsa)l and llb)ll and lllc)l and llld)l , ll and lllCorrect answer is option 'C'. Can you explain this answer?.
Solutions for Which of the following statements are correct regarding the parameters governing Deposit Taking NBFCs (NBFC-Ds) and their operations?(l) NBFC-Ds are permitted to accept and renew public deposits for durations ranging from 12 to 60 months but are not repayable on demand.(II) NBFC-Ds are allowed to offer interest rates higher than the ceiling rate set by RBI.(III) The interest on deposits with NBFC-Ds can be paid or compounded at rests shorter than monthly rests.(IV) NBFC-Ds are permitted to offer gifts, incentives, or additional benefits to depositorsa)l and llb)ll and lllc)l and llld)l , ll and lllCorrect answer is option 'C'. Can you explain this answer? in English & in Hindi are available as part of our courses for Bank Exams.
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ample number of questions to practice Which of the following statements are correct regarding the parameters governing Deposit Taking NBFCs (NBFC-Ds) and their operations?(l) NBFC-Ds are permitted to accept and renew public deposits for durations ranging from 12 to 60 months but are not repayable on demand.(II) NBFC-Ds are allowed to offer interest rates higher than the ceiling rate set by RBI.(III) The interest on deposits with NBFC-Ds can be paid or compounded at rests shorter than monthly rests.(IV) NBFC-Ds are permitted to offer gifts, incentives, or additional benefits to depositorsa)l and llb)ll and lllc)l and llld)l , ll and lllCorrect answer is option 'C'. Can you explain this answer? tests, examples and also practice Bank Exams tests.
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