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Question
NBFCs don't meet the legal definitions of a bank and dont have a full banking license.
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Solution
The correct option is A True
NBFC (Non Banking Financial Companies) cannot accept demand
deposits. They do not form part of the payment and settlement system and cannot
issue cheques drawn on itself.
Deposit insurance facility of
Deposit Insurance and Credit Guarantee Corporation is also not available to
depositors of NBFCs, unlike
in case of commercial banks.
NBFC (Non Banking Financial Companies) cannot accept demand deposits. They do not form part of the payment and settlement system and cannot issue cheques drawn on itself.
Deposit insurance facility of Deposit Insurance and Credit Guarantee Corporation is also not available to depositors of NBFCs, unlike in case of commercial banks.
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