2022 · Q82
A non-banking financial company cannot
indian-polity-economybanking-finance
- Agive loans
- Bmake investments
- Cborrow from bank
- Dseek demand deposits from public and cannot issue cheques
Explanation
A non-banking financial company (NBFC) cannot accept demand deposits from the public and cannot issue cheques drawn on itself — unlike banks, NBFCs cannot offer savings/current accounts with cheque facilities. NBFCs can, however, give loans (option A), make investments (option B) and borrow from banks (option C). Hence option D states what an NBFC cannot do.