Consider the following statements about Non Banking Financial Companies NBFCs 1 NBFCs are regulated...........

Economic Affairs Non Banking Financial Companies (NBFCs)

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Consider the following statements about Non-Banking Financial Companies (NBFCs)

1.NBFCs are regulated by RBI only.

2.To be registered by RBI they should have a minimum net owned fund of Rs 2 crore.

3.Deposit insurance facility of Deposit Insurance and Credit Guarantee

How many of the statements given above are correct?

Only One

Only Two

All Three

None

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Explanation:

The first statement is incorrect. NBFCs are regulated by both the Reserve Bank of India (RBI) and other regulators, depending on the type of NBFC and its activities.

To be registered by RBI, NBFCs should have a minimum net-owned fund (NOF) of Rs 2 crore. This is a correct statement.

Deposit insurance facility is not provided by the Deposit Insurance and Credit Guarantee Corporation (DICGC) to NBFCs. DICGC primarily provides deposit insurance to banks, and it doesn't cover deposits with NBFCs.