BANKING GENERAL KNOWLEDGE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Under which act NBFCs are incorporated?
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Banking Regulation Act, 1949
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Companies Act, 1956
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RBI Act 1934
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SBI Act 1955
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Explanation:
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: -In terms of Section 45-IA of the RBI Act, 1934 it is mandatory for a company to obtain Certificate of Registration (CoR) from Reserve Bank of India (RBI) before commencing or to carry on business of a non-banking financial institution.
Detailed explanation-3: -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.
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