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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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Q4.Which one of the following is an example for Non-Banking Financial institution?

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Q7.Indian national strategy for financial inclusion, 2019-24 aims at: A. Broadening and deepening of financial inclusion B. Digitisation and seamless facilitation of financial transactions C. Access to formal financial services in an affordable manner. D. Women empowerment and strengthening self help group (SHG) ecosystems. E. Promoting financial literacy and consumer protection Choose the most appropriate answer from the options given below:
Q8.Who is the regulatory authority for Merchant Banking in India?
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