Which of the following statement is are correct 1 Non banking finance companies NBFC can rsquo t iss...........

Economic Affairs Non Banking Financial Companies (NBFCs)

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Which of the following statement is/are correct?

1. Non banking finance companies (NBFC) can’t issue cheques.

2. NBFC can engage in insurance business.

Select the correct answer using codes given below.

1 Ony

2 only

Both 1 and 2

Neither 1 nor 2

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Explanation:

Both the statements are correct.

NBFC stands for non banking financial company as the name suggests nbfc is not a bank ,perform only lending functions to public and nbfc cannot accept deposits from public. They can not issue self drawn cheques and demand draft.

A Non-Banking Financial Company (NBFC) is a company registered under the Companies Act, 1956 engaged in the business of loans and advances, acquisition of shares/stocks/bonds/debentures/securities issued by Government or local authority or other marketable securities of a like nature, leasing, hire-purchase and insurance.