Which of the following statement/s is/are correct?
1. Chit Funds are type of NBFC
2. All NBFCs are ruled by RBI
3. RBI said any purchase of a stake of 26% or more in a company, or a change in more than 30% of its directors, would need the central bank's permission.
A. 1 and 2
B. 2 and 3
C. 1 and 3
D. All of the above
Answer: Option C
This Question Belongs to Commerce >> Banking And Financial Institutions
Chit Funds are a type of NBFC:
This statement is incorrect. Chit Funds are not classified as Non-Banking Financial Companies (NBFCs). They are regulated by respective State Governments under the Chit Funds Act and are specifically excluded from the definition of deposits under the RBI Act. Therefore, chit funds operate under a different regulatory framework than NBFCs.