Question
With reference to Non-Banking Financial Company (NBFC),
consider the following statements:        I.           NBFC cannot accept demand deposits.      II.           NBFCs do not form part of the payment and settlement system and cannot issue cheques drawn on itself.    III.           Deposit insurance facility of Deposit Insurance and Credit Guarantee Corporation is not available to depositors of NBFCs. Which of the statements given above is/are correct?Solution
Features of NBFCs ·        NBFC cannot accept demand deposits. ·        NBFCs 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 not available to depositors of NBFCs.
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