ECONOMICS
FINANCIAL MARKETS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Agriculture activity
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Sale of Immovable property
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Industrial Activity
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All of the above
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Detailed explanation-1: -Exclusions from the definition: The NBFC business does not include business whose principal business is the following: Agricultural Activity. Industrial Activity. Purchase or sale of any goods excluding securities.
Detailed explanation-2: -NBFCs cannot offer gifts/incentives or any other additional benefit to the depositors. NBFCs should have minimum investment grade credit rating. The deposits with NBFCs are not insured. The repayment of deposits by NBFCs is not guaranteed by RBI.
Detailed explanation-3: -NBFCs include a loan company, an investment company, asset finance company ( i.e. a company conducting the business of equipment leasing or hire purchase finance) and Residuary Non-Banking Companies.
Detailed explanation-4: -NBFC cannot accept demand deposits 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.
Detailed explanation-5: -Investment banks, mortgage lenders, money market funds, insurance companies, hedge funds, private equity funds, and P2P lenders are all examples of NBFCs.