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Which one of the following is an example for Non-Banking Financial institution?

This question was previously asked in
Territorial Army Official Paper II (Conducted on 28 Jul 2019)
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  1. RBI
  2. SBI
  3. IOB
  4. LIC

Answer (Detailed Solution Below)

Option 4 : LIC
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Detailed Solution

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The correct answer is LIC.

  • A Non-banking financial organization (NBFI) is a financial organization that doesn't have a full banking license or isn't supervised by a national or international banking administrative body.
  • A Non-Banking Financial Company (NBFC) is a company registered under the Companies Act, 1956
  • It engaged within the business of loans and advances, acquisition of shares, stocks, bonds, debentures, securities issued by the Government, or local authority.
  • Some of the NBFI in India are LIC, Power Finance Corporation Limited, Muthoot Finance Ltd, Tata Capital Financial Services Ltd, etc

Additional Information

Differencence between Banks & NBFI-

Banks NBFI
It accepts the demand deposit. It does not accept the demand deposit.
It can issue cheques. It cannot issue cheques.
The deposit insurance facility of Deposit Insurance and Credit Guarantee Corporation is  available The deposit insurance facility of Deposit Insurance and Credit Guarantee Corporation is not available

 

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