BANKING GENERAL KNOWLEDGE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Deposit Insurance facility
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Acquisition of shares
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Loans and Advances
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All of the Above
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Detailed explanation-1: -NBFCs do not form part of the payment and settlement system and cannot issue cheques drawn on themselves; iii. the deposit insurance facility of Deposit Insurance and Credit Guarantee Corporation is not available to depositors of NBFCs, unlike in the case of banks. Thus, option 2 is the correct answer.
Detailed explanation-2: -The depositor must bear in mind that public deposits are unsecured and Deposit Insurance facility is not available to depositors of NBFCs.
Detailed explanation-3: -NBFCs are not part of the payment and settlement system, so they are unable to issue checks drawn on themselves. Unlike banks, NBFC depositors do not have access to the Deposit Insurance and Credit Guarantee Corporation’s deposit insurance facility.
Detailed explanation-4: -NBFC does not provide service of implementation of modernisation as per above option.
Detailed explanation-5: -Since NBFC’s do not have functions of a regular bank like accepting deposits, they have lesser regulation.