Drishti IAS - English (Information & Motivation)
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Drishti IAS - English (Information & Motivation)
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The correct answer is option (B).
NBFCs lend and make investments and hence their activities are akin to that of banks; however there are a few differences as given below:
Statements 1 and 3 are incorrect. Statement 2 is correct. NBFCs do not form part of the payment and settlement system and cannot issue cheques drawn on itself;
Correct statements are:
1) NBFC cannot accept demand deposits; and 3) The deposit insurance facility of Deposit Insurance and Credit Guarantee Corporation is not available to depositors of NBFCs, unlike in case of banks.
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