ECONOMICS
FINANCIAL MARKETS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Commercial Banks
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Foreign Banks
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Local area Banks
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NBFC
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Detailed explanation-1: -1. NBFCs are registered under the RBI Act, 1934. 2. NBFCs cannot accept demand deposits.
Detailed explanation-2: -NBFC cannot accept demand deposits; ii. NBFCs do not form part of the payment and settlement system and cannot issue cheques drawn on itself; iii.
Detailed explanation-3: -No, unlike a bank, NBFCs cannot issue any demand drafts. This is because NBFCs are not part of the payment and settlement system, so they are incapable to issue statements drawn on themselves.
Detailed explanation-4: -Explanation: NBFC does not include any institution whose principal business is that of agriculture activity, industrial activity, purchase or sale of any goods (other than securities) or providing any services and sale/purchase/construction of immovable property.
Detailed explanation-5: -The deposit insurance facility of Deposit Insurance and Credit Guarantee Corporation is not available to depositors of NBFCs.