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    Question

    Which of the following functions cannot be performed by

    NBFCs?
    A Providing loans Correct Answer Incorrect Answer
    B Making investments Correct Answer Incorrect Answer
    C Accepting demand deposits Correct Answer Incorrect Answer
    D Acquisition of shares Correct Answer Incorrect Answer

    Solution

    NBFCs do not form part of the payment and settlement system and cannot issue cheques drawn on itself; The deposit insurance facility of Deposit Insurance and Credit Guarantee Corporation is not available to depositors of NBFCs. NBFCs are not engaged in agricultural activities or industrial activities. 

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