Q5. With reference to the Non-banking Financial Companies (NBFCs) in India, consider the following statements:
1. They cannot engage in the acquisition of securities issued by the government.
2. They cannot accept demand deposits like Savings Account.
Which of the statement/s given above is/are correct?
Q5. With reference to the Non-banking Financial Companies (NBFCs) in India, consider the following statements:
1. They cannot engage in the acquisition of securities issued by the government.
2. They cannot accept demand deposits like Savings Account.
Which of the statement/s given above is/are correct?
The correct option is B b) 2 only
Non-Banking Finance Company (NBFC) is a company registered under the Companies Act, 1956 and is engaged in the business of loans and advances, acquisition at shares/stock/bonds/debentures/ securities issued by government or local authority or other securities of marketable nature, leasing, hire, purchase, insurance business, chit business. NBFCs are finance companies but not banks and are thus not allowed to function as bank but to take deposits in other forms like fixed deposits. They are not allowed to open savings bank accounts and are not members of the clearing houses.
b) 2 only
Non-Banking Finance Company (NBFC) is a company registered under the Companies Act, 1956 and is engaged in the business of loans and advances, acquisition at shares/stock/bonds/debentures/ securities issued by government or local authority or other securities of marketable nature, leasing, hire, purchase, insurance business, chit business. NBFCs are finance companies but not banks and are thus not allowed to function as bank but to take deposits in other forms like fixed deposits. They are not allowed to open savings bank accounts and are not members of the clearing houses.
