Which among the following entities other than banks is/are permitted by RBI to accept deposits and lend money? a. Co-operative Credit Societies b. NBFC
Question
Which among the following entities other than banks is/are permitted by RBI to accept deposits and lend money? a. Co-operative Credit Societies b. NBFC
Solution
The Reserve Bank of India (RBI) permits both Co-operative Credit Societies and Non-Banking Financial Companies (NBFCs) to accept deposits and lend money.
Here's a step-by-step explanation:
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Co-operative Credit Societies: These are financial institutions where members are both the owners and the customers. They are allowed to accept deposits from and lend money to their members. They are regulated by the RBI and have to follow the guidelines set by it.
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Non-Banking Financial Companies (NBFCs): These are companies registered under the Companies Act, 1956 of India, engaged in the business of loans and advances, acquisition of shares, bonds, etc.
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