Economics · Economy
Which of the following constitutes a major operational distinction between Non-Banking Financial Companies (NBFCs) and Traditional Commercial Banks in India?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
Share:
- 1Commercial banks can issue equity, whereas NBFCs cannot issue shares
- 2NBFCs cannot accept demand deposits and cannot issue checks drawn on themselves, whereas banks can✓
- 3Commercial banks are regulated by SEBI, while NBFCs are regulated by the Ministry of Corporate Affairs
- 4NBFC structures are characterised by unlimited liability models
Correct answer
NBFCs cannot accept demand deposits and cannot issue checks drawn on themselves, whereas banks can
Download Single Question PDF
Save this question and verified answer as a clean study sheet with live clickable link.
👥
Share with Friends & Study Groups
Challenge your peer aspirants on WhatsApp or Telegram to solve this question!
Online Test Series
Start Free Mock Test →Preparing for Economics?
Practice full-length mock tests with real exam timers, instant score analysis, and all-India ranking.
Chapter Practice
Practice Economy MCQs →Want more practice questions on Economy?
Solve complete topic-wise tests with detailed solutions on GkGet.
Related Practice Questions
Recommended practice questions in Economics · Economy