{"id":86285,"date":"2025-06-01T03:42:36","date_gmt":"2025-06-01T03:42:36","guid":{"rendered":"https:\/\/exam.pscnotes.com\/mcq\/?p=86285"},"modified":"2025-06-01T03:42:36","modified_gmt":"2025-06-01T03:42:36","slug":"which-one-of-the-following-statements-about-non-banking-financial-comp","status":"publish","type":"post","link":"https:\/\/exam.pscnotes.com\/mcq\/which-one-of-the-following-statements-about-non-banking-financial-comp\/","title":{"rendered":"Which one of the following statements about Non-Banking Financial Comp"},"content":{"rendered":"

Which one of the following statements about Non-Banking Financial Companies (NBFCs) is not correct ?<\/p>\n

[amp_mcq option1=”NBFCs cannot accept demand deposits.” option2=”NBFCs cannot give loans.” option3=”NBFCs cannot issue cheques drawn on themselves.” option4=”NBFCs cannot offer deposit insurance facility of Deposit Insurance and Credit Guarantee Corporation.” correct=”option2″]<\/p>\n

\n
\n
This question was previously asked in<\/div>\n
UPSC CDS-2 – 2022<\/div>\n<\/div>\n
Download PDF<\/a>Attempt Online<\/a><\/div>\n<\/div>\n
\nNon-Banking Financial Companies (NBFCs) are institutions that provide financial services, but do not have a banking license. Their primary activities include providing loans and advances, investing in shares, stocks, bonds, debentures, securities, and other marketable securities. Therefore, the statement “NBFCs cannot give loans” is incorrect. Lending is one of the principal business activities of NBFCs.
\n<\/section>\n
\nNBFCs are financial institutions whose main functions include lending and investment.
\n<\/section>\n
\nUnlike banks, NBFCs cannot accept demand deposits, cannot issue cheques drawn on themselves, and deposits with NBFCs are not covered by the Deposit Insurance and Credit Guarantee Corporation (DICGC). They are registered under the Companies Act, 2013, and regulated by the Reserve Bank of India (RBI).
\n<\/section>\n","protected":false},"excerpt":{"rendered":"

Which one of the following statements about Non-Banking Financial Companies (NBFCs) is not correct ? [amp_mcq option1=”NBFCs cannot accept demand deposits.” option2=”NBFCs cannot give loans.” option3=”NBFCs cannot issue cheques drawn on themselves.” option4=”NBFCs cannot offer deposit insurance facility of Deposit Insurance and Credit Guarantee Corporation.” correct=”option2″] This question was previously asked in UPSC CDS-2 – … <\/p>\n

Detailed SolutionWhich one of the following statements about Non-Banking Financial Comp<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1088],"tags":[1108,1120,1190],"class_list":["post-86285","post","type-post","status-publish","format-standard","hentry","category-upsc-cds-2","tag-1108","tag-economic-development","tag-money-banking","no-featured-image-padding"],"yoast_head":"\nWhich one of the following statements about Non-Banking Financial Comp<\/title>\n<meta name=\"description\" content=\"Non-Banking Financial Companies (NBFCs) are institutions that provide financial services, but do not have a banking license. Their primary activities include providing loans and advances, investing in shares, stocks, bonds, debentures, securities, and other marketable securities. Therefore, the statement "NBFCs cannot give loans" is incorrect. Lending is one of the principal business activities of NBFCs. NBFCs are financial institutions whose main functions include lending and investment.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/exam.pscnotes.com\/mcq\/which-one-of-the-following-statements-about-non-banking-financial-comp\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Which one of the following statements about Non-Banking Financial Comp\" \/>\n<meta property=\"og:description\" content=\"Non-Banking Financial Companies (NBFCs) are institutions that provide financial services, but do not have a banking license. Their primary activities include providing loans and advances, investing in shares, stocks, bonds, debentures, securities, and other marketable securities. Therefore, the statement "NBFCs cannot give loans" is incorrect. Lending is one of the principal business activities of NBFCs. NBFCs are financial institutions whose main functions include lending and investment.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/exam.pscnotes.com\/mcq\/which-one-of-the-following-statements-about-non-banking-financial-comp\/\" \/>\n<meta property=\"og:site_name\" content=\"MCQ and Quiz for Exams\" \/>\n<meta property=\"article:published_time\" content=\"2025-06-01T03:42:36+00:00\" \/>\n<meta name=\"author\" content=\"rawan239\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"rawan239\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"1 minute\" \/>\n<!-- \/ Yoast SEO Premium plugin. -->","yoast_head_json":{"title":"Which one of the following statements about Non-Banking Financial Comp","description":"Non-Banking Financial Companies (NBFCs) are institutions that provide financial services, but do not have a banking license. Their primary activities include providing loans and advances, investing in shares, stocks, bonds, debentures, securities, and other marketable securities. Therefore, the statement \"NBFCs cannot give loans\" is incorrect. Lending is one of the principal business activities of NBFCs. NBFCs are financial institutions whose main functions include lending and investment.","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/exam.pscnotes.com\/mcq\/which-one-of-the-following-statements-about-non-banking-financial-comp\/","og_locale":"en_US","og_type":"article","og_title":"Which one of the following statements about Non-Banking Financial Comp","og_description":"Non-Banking Financial Companies (NBFCs) are institutions that provide financial services, but do not have a banking license. Their primary activities include providing loans and advances, investing in shares, stocks, bonds, debentures, securities, and other marketable securities. Therefore, the statement \"NBFCs cannot give loans\" is incorrect. Lending is one of the principal business activities of NBFCs. NBFCs are financial institutions whose main functions include lending and investment.","og_url":"https:\/\/exam.pscnotes.com\/mcq\/which-one-of-the-following-statements-about-non-banking-financial-comp\/","og_site_name":"MCQ and Quiz for Exams","article_published_time":"2025-06-01T03:42:36+00:00","author":"rawan239","twitter_card":"summary_large_image","twitter_misc":{"Written by":"rawan239","Est. reading time":"1 minute"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"WebPage","@id":"https:\/\/exam.pscnotes.com\/mcq\/which-one-of-the-following-statements-about-non-banking-financial-comp\/","url":"https:\/\/exam.pscnotes.com\/mcq\/which-one-of-the-following-statements-about-non-banking-financial-comp\/","name":"Which one of the following statements about Non-Banking Financial Comp","isPartOf":{"@id":"https:\/\/exam.pscnotes.com\/mcq\/#website"},"datePublished":"2025-06-01T03:42:36+00:00","dateModified":"2025-06-01T03:42:36+00:00","author":{"@id":"https:\/\/exam.pscnotes.com\/mcq\/#\/schema\/person\/5807dafeb27d2ec82344d6cbd6c3d209"},"description":"Non-Banking Financial Companies (NBFCs) are institutions that provide financial services, but do not have a banking license. Their primary activities include providing loans and advances, investing in shares, stocks, bonds, debentures, securities, and other marketable securities. Therefore, the statement \"NBFCs cannot give loans\" is incorrect. Lending is one of the principal business activities of NBFCs. NBFCs are financial institutions whose main functions include lending and investment.","breadcrumb":{"@id":"https:\/\/exam.pscnotes.com\/mcq\/which-one-of-the-following-statements-about-non-banking-financial-comp\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/exam.pscnotes.com\/mcq\/which-one-of-the-following-statements-about-non-banking-financial-comp\/"]}]},{"@type":"BreadcrumbList","@id":"https:\/\/exam.pscnotes.com\/mcq\/which-one-of-the-following-statements-about-non-banking-financial-comp\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/exam.pscnotes.com\/mcq\/"},{"@type":"ListItem","position":2,"name":"UPSC CDS-2","item":"https:\/\/exam.pscnotes.com\/mcq\/category\/upsc-cds-2\/"},{"@type":"ListItem","position":3,"name":"Which one of the following statements about Non-Banking Financial Comp"}]},{"@type":"WebSite","@id":"https:\/\/exam.pscnotes.com\/mcq\/#website","url":"https:\/\/exam.pscnotes.com\/mcq\/","name":"MCQ and Quiz for Exams","description":"","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/exam.pscnotes.com\/mcq\/?s={search_term_string}"},"query-input":"required name=search_term_string"}],"inLanguage":"en-US"},{"@type":"Person","@id":"https:\/\/exam.pscnotes.com\/mcq\/#\/schema\/person\/5807dafeb27d2ec82344d6cbd6c3d209","name":"rawan239","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/exam.pscnotes.com\/mcq\/#\/schema\/person\/image\/","url":"https:\/\/secure.gravatar.com\/avatar\/761a7274f9cce048fa5b921221e7934820d74514df93ef195a9d22af0c1c9001?s=96&d=mm&r=g","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/761a7274f9cce048fa5b921221e7934820d74514df93ef195a9d22af0c1c9001?s=96&d=mm&r=g","caption":"rawan239"},"sameAs":["https:\/\/exam.pscnotes.com"],"url":"https:\/\/exam.pscnotes.com\/mcq\/author\/rawan239\/"}]}},"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/posts\/86285","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/comments?post=86285"}],"version-history":[{"count":0,"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/posts\/86285\/revisions"}],"wp:attachment":[{"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/media?parent=86285"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/categories?post=86285"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/tags?post=86285"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}