BANKING GENERAL KNOWLEDGE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Companies Act, 1970
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Companies Act, 1956
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Companies Act, 1967
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Companies Act, 1958
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Detailed explanation-1: -A Non–Banking Financial Corporation is a company incorporated under the Companies Act 2013 or 1956. According to section 45-I (c) of the RBI Act, a Non–Banking Company carrying on the business of a financial institution will be an NBFC.
Detailed explanation-2: -The Reserve Bank of India Act, 1934 amended on 1 December 1964 by Reserve Bank Amendment Act, 1963. In this new ‘Chapter III-B’ introduced to Regulate ‘Deposit Accepting’ NBFCs.
Detailed explanation-3: -NBFC is incorporated under the Companies Act, whereas a bank is registered under the Banking Regulation Act 1949. NBFCs are not allowed to accept deposits that are repayable on demand, whereas banks accept demand deposits. In NBFC, Foreign Investments up to 100% are allowed.