Can NBFC purchase Government securities?
Table of Contents
- 1 Can NBFC purchase Government securities?
- 2 Which of the following does not have any roles in regulation of NBFCs?
- 3 How are NBFCs different from banks?
- 4 Which among the following NBFC are not excluded from the ombudsman scheme of NBFC?
- 5 Can NBFCs accept public deposits?
- 6 What are the limitations of NBFCs?
Can NBFC purchase Government securities?
An NBFC company can acquire shares, stocks, bonds, debentures, and securities from the Government as well as the local authorities or some other marketable securities. It may be involved in hire-purchase, leasing, insurance business, chit fund business.
Which of the following does not have any roles in regulation of NBFCs?
Which of the following statements is/are correct? A) NBFCs does not hold a banking license. B) NBFC can issue Demand Drafts like banks….
| Q. | Which of the following does not have any roles in regulation of NBFCs? |
|---|---|
| A. | National Housing Bank |
| B. | Reserve Bank of India |
| C. | SIDBI |
| D. | Ministry of Corporate Affairs |
Which of the following is not a NBFC?
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.
How are NBFCs different from banks?
NBFC cannot accept demand deposits; NBFCs do not form part of the payment and settlement system and cannot issue cheques drawn on itself. While banks are incorporated under banking companies act, NBFC is incorporated under company act of 1956.
Which among the following NBFC are not excluded from the ombudsman scheme of NBFC?
The non banking financial company-infrastructure finance company (NBFC-IFC), core investment company (CIC), infrastructure debt fund-non-banking financial company (IDF-NBFC) and an NBFC under liquidation, are excluded from the ambit of the Scheme.
What is the difference between NBFCs and banks?
NBFCs are the alternative to the banking and financial sector. Though their financial activities are quite similar to banks, still, the differences between the two do exist. For example, the deposits in NBFC are not insured. Or, unlike banks, NBFCs are not entitled to accept demand deposits or issue cheques.
Can NBFCs accept public deposits?
The depositor should check the list of NBFCs permitted to accept public deposits and also check that it is not appearing in the list of companies prohibited from accepting deposits. NBFCs have to prominently display the Certificate of Registration (CoR) issued by the Reserve Bank on its site.
What are the limitations of NBFCs?
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. deposit insurance facility of Deposit Insurance and Credit Guarantee Corporation is not available to depositors of NBFCs, unlike in case of banks.
What are the sources of borrowings for NBFCs?
Subject to the Exchange Control Regulations, the NBFCs can receive external commercial borrowings from foreign Overseas Corporate Bodies, individuals, FIIs, and other trusts or persons. The moneys received from all these sources are excluded from the definition of public deposit as per the provisions of NBFC Directions.