What is difference between banks & HFCs? A. HFCs cannot accept demand deposits B. It cannot issue cheques drawn on itself C. deposit insurance facility of Deposit Insurance and Credit Guarantee Corporation is not available to depositors of HFCs D. All of the Above E. None of the Above

1 Answer

Answer :

D. All of the Above Explanation: HFCs are doing functions similar to banks as banks also provides housing loans. However, there are a few differences as given below: ♦ HFCs cannot accept demand deposits ♦ HFCs do not form part of the payment and settlement system and cannot issue cheques drawn on itself; ♦ Deposit insurance facility of Deposit Insurance and Credit Guarantee Corporation(DICGC) is not available to depositors of HFCs, unlike in case of banks.

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