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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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