Regulations for NBFCs

Statements 1 and 4 are correct. By definition, NBFCs are prohibited from accepting demand deposits (repayable on demand), distinguishing them from commercial banks. Furthermore, the DICGC deposit insurance shield protects commercial bank accounts but does not cover depositors in deposit-taking NBFCs. Statement 2 is incorrect because while the RBI regulates most NBFCs, several specialized entities are registered under other regulators (e.g., Housing Finance Companies under NHB, Insurance firms under IRDAI, Merchant Banks under SEBI). Statement 3 is incorrect because NBFCs are excluded from the formal payment and settlement system and cannot issue checks drawn on themselves.