GK
BANKING AWARENESS AND SEBI
|
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
|
|
|
Non banking Fiscal Companies
|
|
|
Non Banking Financial Companies
|
|
|
New Banking Financial Companies
|
|
|
Neo Banking Financial Confederation
|
Detailed explanation-1: -Systemically Important: NBFCs whose asset size is of INR 500 crore or more as per last audited balance sheet are considered as systemically important NBFCs. Non-Systemically Important: NBFCs whose asset size is below INR 500 crore as per last audited balance sheet are considered as systemically important NBFCs.
Detailed explanation-2: -As against traditional banks, NBFCs supply long-run credit to trade and commerce industry. They facilitate to fund large infrastructure projects and boost economic development. Long-term finance permits growth with stable and soft interest rates. The economy thrives when businesses of SSIs and MSMEs flourish.
Detailed explanation-3: -Definition under the RBI Act A company is, therefore, considered to be an NBFC if it carries on any of the financial activities listed under clause (i) to (vi) of section 45 I (c) of the Act. Where the company is principally engaged in business of non-financial nature like real estate, agriculture etc.