Q. NBFCs are doing functions similar to banks. What is difference between banks & NBFCs ?
- NBFC cannot accept demand deposits
- NBFCs do not form part of the payment and settlement system
- NBFCs cannot issue cheques drawn on itself
Choose the correct option from the codes given below:
Answer:
1, 2 & 3
Notes:
- NBFCs cannot accept demand deposits - Correct. Only banks can accept demand deposits from the public.
- NBFCs do not form part of the payment and settlement system - Correct. They are not part of systems like RTGS or NEFT which banks are part of.
- NBFCs cannot issue cheques drawn on itself - Correct. NBFCs cannot issue negotiable instruments like cheques.
All three statements correctly highlight regulatory differences between banks and NBFCs in India.