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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