Q99.
Consider the following statements about the Non-Banking Financial Companies (NBFCs) in Indi NBFCs cannot accept demand deposits. 2. All the NBFCs operating in India have to be registered with the RBI. 3. NBFCs form part of the payment and settlement system and can issue cheque drawn on itself. 4. Deposit insurance facility of Deposit Insurance and Credit Guarantee Corporation (DICGC) is not available to the depositors of deposit taking NBFCs. Which of the statements given above is/are correct ?
Answer
A
Explanation
NBFCs generally cannot accept demand deposits, and DICGC deposit insurance does not cover deposits of deposit-taking NBFCs. Not every financial entity called an NBFC is captured by the same RBI-registration route, and NBFCs cannot issue cheques drawn on themselves as banks do. Hence 1 and 4 → A.