Consider the following statements regarding Non-Banking Financial Companies (NBFC’s):

It is a heterogeneous group of institutions performing financial intermediation.

They can do activities like agricultural, industrial, sale & purchase and construction of immovable property.

Which of the statements given above is/are correct?

Question

It is a heterogeneous group of institutions performing financial intermediation. Correct: NBFCs (Non-Banking Financial Companies) are fast emerging as an important segment of Indian financial system. It is an heterogeneous group of institutions (other than commercial and co-operative banks) performing financial intermediation in a variety of ways, like accepting deposits, making loans and advances, leasing, hire purchase, etc.
They can do activities like agricultural, industrial, sale & purchase and construction of immovable property. Incorrect: They cannot have certain activities as their principal business—agricultural, industrial and sale, purchase or construction of immovable property.

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It is a heterogeneous group of institutions performing financial intermediation. Correct: NBFCs (Non-Banking Financial Companies) are fast emerging as an important segment of Indian financial system. It is an heterogeneous group of institutions (other than commercial and co-operative banks) performing financial intermediation in a variety of ways, like accepting deposits, making loans and advances, leasing, hire purchase, etc.
They can do activities like agricultural, industrial, sale & purchase and construction of immovable property. Incorrect: They cannot have certain activities as their principal business—agricultural, industrial and sale, purchase or construction of immovable property.

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