Difference Between Bank and NBFC, FREE Quiz & PDF

Q1. What is the primary function of a bank according to the transcript?

Q2. Which act typically governs the registration of an NBFC?

Q3. Can an NBFC use the word “Bank” in its name?

Q4. Which of the following is a key difference regarding deposits between banks and most NBFCs?

Q5. Do NBFCs form a part of the Payment and Settlement System?

Q6. Can an NBFC issue checks drawn on itself?

Q7. Which organization provides deposit insurance for bank customers but not for NBFC depositors?

Q8. What is the maximum insurance amount provided by DICGC per depositor in a bank?

Q9. Banks are registered and regulated under which specific act?

Q10. Which entity grants the banking license to banks?

Q11. What is the term for the maximum amount of capital a company is authorized to raise?

Q12. If a company has 1 lakh shares at ₹10 each, what is its total authorized capital?

Q13. What is “Called-up Capital”?

Q14. What is “Paid-up Capital”?

Q15. What is “Reserve Capital”?

Q16. According to the transcript, what was the initial Net Owned Fund (NOF) requirement for most NBFCs?

Q17. As of October 2022, what is the updated NOF requirement for NBFCs?

Q18. What are Net Owned Funds (NOF)?

Q19. To increase authorized capital, whose permission is required?

Q20. Which of these is NOT required to register with RBI as an NBFC because they are regulated by other bodies?

Q21. Which body regulates Housing Finance Companies?

Q22. Which organization regulates Stock Exchanges and Mutual Benefit Companies?

Q23. How can NBFCs be categorized based on their liabilities?

Q24. What determines if an NBFC is “Systemically Important”?

Q25. What is the primary activity of an Asset Finance Company (AFC)?

Q26. Mahindra & Mahindra Financial Services is given as an example of which type of NBFC?

Q27. What is the principal business of a “Loan Company”?

Q28. For a Mortgage Guarantee Company, what percentage of its turnover should come from mortgage guarantee business?

Q29. What is the maximum NOF for a Mortgage Guarantee Company mentioned?

Q30. What is the main activity of a Core Investment Company (CIC)?

Q31. Are NBFC-MFIs typically deposit-taking or non-deposit taking?

Q32. What percentage of an NBFC-MFI’s assets must be in the form of qualifying assets (loans)?

Q33. What was the initial household income limit for a rural borrower to qualify for an MFI loan?

Q34. What was the initial household income limit for an urban/semi-urban borrower for an MFI loan?

Q35. In the first cycle of an MFI loan, the loan amount should generally not exceed:

Q36. What is the maximum total indebtedness of a borrower for MFI loans mentioned?

Q37. What was the minimum tenure for MFI loans above a certain amount (initial rules)?

Q38. MFI stands for:

Q39. Do MFIs provide “small-scale” or “large-scale” finance?

Q40. Which of the following is a criterion for an MFI loan borrower?

Q41. What does IPO stand for?

Q42. Why do companies issue shares (IPO) instead of taking loans?

Q43. What happens to a shareholder if the company makes a profit?

Q44. What happens to a shareholder if the company incurs a loss?

Q45. “Infrastructure Finance Company” is a type of:

Q46. Chit Fund companies are registered under which act?

Q47. Nidhi companies are notified under which section of the Companies Act 1956?

Q48. Does an NBFC require a banking license to operate as a company?

Q49. Which type of deposit is usually PROHIBITED for NBFCs?

Q50. Can a bank create credit?

Q51. What is the main difference between “Called-up” and “Paid-up” capital if some shareholders don’t pay?

Q52. Can NBFCs issue Demand Drafts (DD)?

Q53. Which of the following is NOT a banking service according to the session?

Q54. Who regulates insurance companies instead of RBI?

Q55. What is the role of a “Promoter” in a company?

Q56. If a company wants to raise exactly ₹5 lakhs and asks investors for it, that ₹5 lakhs is:

Q57. Is the RBI website useful for checking authorized NBFCs for deposits?

Q58. Does the transcript mention that NBFCs can invest in stocks and bonds?

Q59. Which facility is NOT provided to NBFCs by RBI that is provided to banks?

Q60. What is the primary focus of “Class – 3” in this course?