Question : Which of the following institutions is responsible for regulating and supervising the functioning of non-banking financial companies (NBFCs) in India?
Option 1: Reserve Bank of India (RBI)
Option 2: Securities and Exchange Board of India (SEBI)
Option 3: National Stock Exchange of India (NSE)
Option 4: None of the above
Correct Answer: Reserve Bank of India (RBI)
Solution : The correct answer is (a) Reserve Bank of India (RBI)
The correct institution responsible for regulating and supervising the functioning of non-banking financial companies (NBFCs) in India is the Reserve Bank of India (RBI).
The RBI is the primary regulatory authority for NBFCs in India. It formulates regulations, guidelines, and prudential norms for NBFCs and oversees their operations. The RBI issues licenses to NBFCs, specifies the regulatory framework, sets capital adequacy norms, and monitors their compliance with regulatory requirements. The RBI's objective is to ensure the stability and resilience of the NBFC sector and protect the interests of depositors and consumers.
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Question : Which of the following institutions regulates and supervises the functioning of non-banking financial companies (NBFCs) in India?
Option 2: Insurance Regulatory and Development Authority of India (IRDAI)
Option 3: Securities and Exchange Board of India (SEBI)
Question : Which of the following is not a function of the Reserve Bank of India (RBI)?
Option 1: Issuing currency notes
Option 2: Regulating the banking system
Option 3: Regulating the securities market
Option 4: Managing the foreign exchange reserves of India
Question : Choose which of the following statements is true.
Option 1: Debentures Redemption Reserve is set aside by all the companies except All India Financial Institutions regulated by RBI and Banking Companies.
Option 2: Amount is set aside to Debentures Redemption Reserve by Unlisted Companies which are not Non-Banking Finance Companies (NBFCs) or Housing Finance Companies (HFCs).
Option 3: Amount is set aside to Debentures Redemption Reserve by all Unlisted Companies.
Option 4: Debentures Redemption Investment is made by the companies required to set aside amount to Debentures Redemption Reserve.
Question : Choose which of the following statements is not correct.
Option 1: Debentures Redemption Investment is made by all companies redeeming the debentures.
Option 2: All India Financial Institutions (AIFIs), Banking Companies and Other Financial Institutions are not required to set aside amount to Debentures Redemption Reserve.
Option 3: Unlisted NBFCs and HFCs are not required to invest 15% of Outstanding Debentures in Specified Securities.
Option 4: Debentures Redemption Reserve can be used only for redemption of debentures.
Question : Which of the following is a feature of a non-banking financial company (NBFC)?
Option 1: Accepting deposits from the public
Option 2: Regulated by the Reserve Bank of India (RBI)
Option 3: Providing credit facilities
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