Non-Banking Financial Companies (NBFCs) are financial institutions that provide various banking services but do not hold a banking license. Unlike banks, they cannot accept demand deposits. The question lists several types of financial entities. Let's clarify which ones are classified as NBFCs:

1. **Mutual Funds**: Not classified as NBFCs, as they pool money from investors and invest in various securities, but they do not provide loans or insurance.

2. **Payment Banks**: These are a type of bank, but they function differently by accepting deposits and providing payment services, rather than traditional banking.

3. **Hedge Funds**: These are investment funds that use pooled funds and employ different strategies to earn active returns for their investors. They are not classified as NBFCs.

4. **Venture Capital Funds**: These funds provide financing to startups and small businesses with long-term growth potential. As they are primarily involved in investing rather than lending, they are generally considered a type of NBFC.

### Conclusion:
Among the options presented, **D. Venture Capital Funds** is the most appropriate answer as a form of NBFC, although it's important to note that this classification can vary by regulatory jurisdiction.

Question

Non-Banking Financial Companies (NBFCs) are financial institutions that provide various banking services but do not hold a banking license. Unlike banks, they cannot accept demand deposits. The question lists several types of financial entities. Let's clarify which ones are classified as NBFCs:

1. **Mutual Funds**: Not classified as NBFCs, as they pool money from investors and invest in various securities, but they do not provide loans or insurance.

2. **Payment Banks**: These are a type of bank, but they function differently by accepting deposits and providing payment services, rather than traditional banking.

3. **Hedge Funds**: These are investment funds that use pooled funds and employ different strategies to earn active returns for their investors. They are not classified as NBFCs.

4. **Venture Capital Funds**: These funds provide financing to startups and small businesses with long-term growth potential. As they are primarily involved in investing rather than lending, they are generally considered a type of NBFC.

### Conclusion:
Among the options presented, **D. Venture Capital Funds** is the most appropriate answer as a form of NBFC, although it's important to note that this classification can vary by regulatory jurisdiction.

Knowee AI · Accepted Answer

Non-Banking Financial Companies (NBFCs) are financial institutions that provide various banking services but do not hold a banking license. Unlike banks, they cannot accept demand deposits. The question lists several types of financial entities. Let's clarify which ones are classified as NBFCs:

1. **Mutual Funds**: Not classified as NBFCs, as they pool money from investors and invest in various securities, but they do not provide loans or insurance.

2. **Payment Banks**: These are a type of bank, but they function differently by accepting deposits and providing payment services, rather than traditional banking.

3. **Hedge Funds**: These are investment funds that use pooled funds and employ different strategies to earn active returns for their investors. They are not classified as NBFCs.

4. **Venture Capital Funds**: These funds provide financing to startups and small businesses with long-term growth potential. As they are primarily involved in investing rather than lending, they are generally considered a type of NBFC.

### Conclusion:
Among the options presented, **D. Venture Capital Funds** is the most appropriate answer as a form of NBFC, although it's important to note that this classification can vary by regulatory jurisdiction.

NBFCs (Non-Banking Financial Companies): A. Mutual Funds B. Payment Banks C. Hedge Funds D. Venture Capital Funds

Question

NBFCs (Non-Banking Financial Companies):

Solution

Conclusion:

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