Table of Contents
What are the guidelines that an NBFC must follow?
Guidelines an NBFC Needs to Follow The public Deposits which the company can take should be for a minimum time period of 12 months and a maximum time period of 60 months. The interest charged by the Company cannot be more than the ceiling prescribed by the Reserve Bank of India from time to time.
Which of the following does not have any role in regulation of NBFC?
Which of the following statements is/are correct? A) NBFCs does not hold a banking license. B) NBFC can issue Demand Drafts like banks….
| Q. | Which of the following does not have any roles in regulation of NBFCs? |
|---|---|
| A. | National Housing Bank |
| B. | Reserve Bank of India |
| C. | SIDBI |
| D. | Ministry of Corporate Affairs |
Which of the following statement are correct regarding the NBFC?
Answer: [A] NBFCs does not hold a banking license. Notes: NBFC cannot accept demand deposits while NBFC cannot issue Demand Drafts like banks.
Which of the following is not a NBFC?
NBFC does not include any institution whose principal business is that of agriculture activity, industrial activity, purchase or sale of any goods (other than securities) or providing any services and sale/purchase/construction of immovable property.
What is NBFC ombudsman?
The internal ombudsman at NBFCs will examine customer complaints related to deficiency in service that have been partly or wholly rejected by the NBFCs. “The increased strength and reach of NBFCs across the country has necessitated various measures by the Reserve Bank for protection of customers of NBFCs.
Can NBFCs take loan against their own shares?
NBFCs own shares guideline – NBFC shall not fund against its own shares. Combine loans to the security of shares – NBFC with asset size of Rs 100 crores and above offering loan against the security of listed shares must, maintain a Loan to Value ratio of 50\% for loans held against the security of shares.
What is the difference between NBFC and banks?
NBFCs lend and make investments and hence their activities are akin to that of banks; however there are a few differences as given below: i. NBFC cannot accept demand deposits; ii. NBFCs do not form part of the payment and settlement system and cannot issue cheques drawn on itself;
Why are banks reluctant to lend to NBFCs after IL&FS default?
With the IL&FS group defaulting on commercial papers, a short-term debt instrument, there are concerns that the banks would be reluctant in lending to NBFCs. The market was already preparing for a cash crunch in the system due to advance tax liabilities.
What is the time limit for NBFCs to file returns?
Ratings of NBFCs: In case of any amendment in rating same information shall be reported within 15 days of such change. The Return to be file by NBFCs before its due date that is within 60 days from the end of the financial year. The financial Assets and income from them should be more than 50\%.