Which of the following is NOT a feature of a Non-Banking Financial Company (NBFC)?

Correct Answer: It can issue cheques drawn on itself

Subject: economics

• It provides financial services like loans and leasing
• It can issue cheques drawn on itself
• It can accept fixed deposits if authorized
• It does not have a full banking license

Explanation: • <b>Key Fact</b> An NBFC cannot issue cheques drawn on itself. • <b>Supporting Detail</b> NBFCs are registered under the Companies Act, 2013 and regulated by the RBI Act, 1934. • <b>Related Concept</b> They cannot accept demand deposits (like savings or current accounts) but can accept fixed deposits if authorized. • <b>Why wrong options are wrong</b> Options A, C, and D are true features of an NBFC. • <b>Exam Trick</b> NBFCs do not participate in the payment and settlement system directly, hence no cheques. • <b>Additional Info</b> NBFCs are also not required to maintain CRR/SLR.

Loading Gyaanify...