Which of the following test is used by RBI to determine whether or not a company is into financial b...........

Economics- Phase (I & II) Non-banking Financial Institutions.

Download Solution PDF

Which of the following test is used by RBI to determine whether or not a company is into financial business?

50-50 test

80-20 rule

fintech test

nominal test

छोटे Courses बड़े Results

Master Non-banking Financial Institutions.

Prepare through Micro-courses

Try Now

Explanation:

Financial activity as principal business is when a company’s financial assets constitute more than 50 per cent of the total assets and income from financial assets constitute more than 50 per cent of the gross income. A company which fulfils both these criteria will be registered as NBFC by RBI