[amp_mcq option1=”Principal non-banking company” option2=”Residential non-banking company” option3=”Residuary non-banking company” option4=”Optional non-banking company” correct=”option3″]
The correct answer is: C. Residuary non-banking company
A non-banking institution that has a principal business of receiving deposits under any scheme or arrangement in one lump sum or in instalments by way of contributions is known as a residuary non-banking company.
A residual non-banking company is a non-banking financial company (NBFC) that is not a primary dealer, a housing finance company, or an investment company. Residual NBFCs are regulated by the Reserve Bank of India (RBI).
Residual NBFCs can engage in a variety of activities, including:
- Accepting deposits from the public
- Lending money
- Dealing in securities
- Providing financial guarantees
- Underwriting and issuing securities
- Providing venture capital
- Providing investment advisory services
Residual NBFCs are required to maintain a minimum net worth of â¹25 crore. They are also required to comply with certain prudential norms, such as capital adequacy and liquidity requirements.
The RBI has the power to impose restrictions on the activities of residual NBFCs. For example, the RBI can restrict the amount of deposits that a residual NBFC can accept from the public.
Residual NBFCs are an important part of the Indian financial system. They provide a range of financial services to businesses and individuals. Residual NBFCs are regulated by the RBI to ensure that they are safe and sound.
The other options are incorrect because:
- A principal non-banking company is a non-banking financial company (NBFC) that has a principal business of carrying on the business of banking.
- A residential non-banking company is a non-banking financial company (NBFC) that has a principal business of financing the purchase or construction of residential property.
- An optional non-banking company is a non-banking financial company (NBFC) that has a principal business of carrying on any other activity not included in the definition of a principal non-banking company, a residential non-banking company, or a residual non-banking company.