2022 · Q8
Which one of the following statements about Non-Banking Financial Companies (NBFCs) is not correct ?
General KnowledgeIndian Economy
- ANBFCs cannot accept demand deposits.
- BNBFCs cannot give loans.
- CNBFCs cannot issue cheques drawn on themselves.
- DNBFCs cannot offer deposit insurance facility of Deposit Insurance and Credit Guarantee Corporation.
Explanation
NBFCs are primarily engaged in lending and investment, so they certainly can give loans. What they cannot do is accept demand deposits, issue cheques drawn on themselves, or offer DICGC deposit insurance, which is available only to banks. The statement that NBFCs cannot give loans is therefore not correct.