ENTREPRENEURSHIP

Detailed explanation-1: -Answer: [A] NBFCs does not hold a banking license. Notes: NBFC cannot accept demand deposits while NBFC cannot issue Demand Drafts like banks.

Detailed explanation-2: -The correct answer is NBFCs cannot give loans.

Detailed explanation-3: -True. Non-banking financial companies (NBFCs) are financial institutions that offer various banking services, but do not have a banking license. Q. NBFCs don’t meet the legal definitions of a bank and dont have a full banking license.

Detailed explanation-4: -Registration Requirements for NBFC As per RBI guidelines, for an NBFC says that it cannot carry on non-banking financial business if in case it does not have a certificate of registration from the bank (except for the NBFC’s who are not regulated by the RBI), and if it does not have Net Owned Funds of Rs. 2 crores.

Detailed explanation-5: -Banks are eligible to provide a number of transactional services to customers, like offering overdraft facility, issuing traveller’s cheque, transferring funds, etc. NBFCs cannot provide these services.