Q. Consider the following statements:
1.NBFC’s raise money from public.
2.NBFC’s advance loans to the various wholesale and retail traders, small-scale industries and self-employed persons.
3.NBFC’s are regulated by NABARD.
Choose the correct answer from below given codes:

[A] 1 only

[B] 1 and 2 only

[C] 1 and 3 only

[D] 1, 2 and 3

Answer: B
Notes:

Explanation: NBFC’s raise funds from the public, directly or indirectly, and lend them to ultimate spenders.

  • They advance loans to the various wholesale and retail traders, small-scale industries and self-employed persons.
  • Thus, they have broadened and diversified the range of products and services offered by a financial sector.
  • RBI, the regulator of the NBFCs, has gives a very wide definition of such companies (a kind of ‘umbrella’ definition)—“a financial institution formed as a company involved in receiving deposits or lending in any manner.”

Source: TMH – Ramesh Singh

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