Multiple choice

Which of the following is true about Non Banking Financial Companies (NBFC's)?

  1. The maturity period ranges from few months to six years.

  2. The limit for acceptance of deposit has been based on the credit rating of the company.

  3. NBFC's offer lower interest rate than the commercial banks.

  4. Security of the deposits are higher than the deposits with the banks.
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

The limit for acceptance of deposit has been based on the credit rating of the company, the NBFC's not having net owned funds of Rupees 25 lakh are not entitled to accept deposits.

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