economics easy True/False

Non-Banking Financial Companies (NBFCs) are allowed to accept demand deposits (savings/current accounts) from the public just like commercial banks.

  1. True
  2. False

Answer: False

NBFCs primarily engage in lending and investment activities but cannot accept demand deposits from the public. Furthermore, they are not part of the payment and settlement system and cannot issue cheques drawn on themselves, distinguishing them fundamentally from commercial banks.

Topic Financial Markets - Institutions
Exam Relevance Banking, SSC, Railway
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