Q. Consider the following statements:
1.Banks are the government authorized financial intermediary that aims at providing banking services whereas Non-Banking Financial Companies (NBFCs) provides banking services to people without carrying a bank license.
2.100% Foreign Investments is allowed in NBFCs.
3.NBFCs are part of the Payment and Settlement system.
Which of the statements given above is/are correct?

[A] 1 only

[B] 1 and 3 only

[C] 1 and 2 only

[D] 3 only

Answer: C
Notes:

Explanation –

Statement 1 and 2 are correct. Banks are the government authorized financial intermediary that aims at providing banking services whereas NBFCs provides banking services to people without carrying a bank license. 100% Foreign Investments is allowed in NBFCs.

Statement 3 is incorrect. NBFCs are not part of the Payment and Settlement system.

Source: The Times of India