Question

Which of the following statement(s) about NBFCs is incorrect?

Read the following passage and answer the next 4 questions  Reserve Bank of India has been regulating the financial activities of the Non-Banking Financial Companies under the provisions of Chapter III B of the Reserve Bank of India Act, 1934. With the amendment of the Reserve Bank of India Act, 1934 in January 1997, in terms of Section 45 IA of the said Act, and amendment of the National Housing Bank Act, 1987 in August 2019, in terms of Section 29 A of the National Housing Bank Act, 1987, all Non-Banking Financial Companies including Housing Finance Companies have to be mandatorily registered with the Reserve Bank of India. The credit-related matters of banks have been progressively deregulated by the Reserve Bank of India. Consistent with the policy of bestowing greater operational freedom to banks in the matter of credit dispensation and in the context of mandatory registration of NBFCs with the Reserve Bank, most of the aspects relating to the financing of NBFCs by banks have also been deregulated
A There shall be a ceiling of Rs.1 crore per borrower for financing subscription to Initial Public Offer (IPO) for listing of NBFCs
B In order to enhance the quality of regulatory capital, NBFC-UL (Upper Layer) shall maintain Common Equity Tier 1 capital of at least 9 per cent of Risk Weighted Assets
C The extant NPA classification norm stands changed to the overdue period of more than 90 days for all categories of NBFCs
D NBFCs can accept deposits. The NBFC-UL can accept both demand deposits and time deposits.
E NBFCs without public funds and customer interface will always remain in the Base Layer of the regulatory structure
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