Can nbfc issue cheques

No, a Non-Banking Financial Company (NBFC) cannot issue cheques to its customers. According to Reserve Bank of India (RBI) regulations, NBFCs differ from traditional banks in several ways:

• NBFCs do not form part of the payment and settlement system in India.
• They are not authorized to issue cheques drawn on themselves.
• NBFCs cannot accept demand deposits, such as savings or current accounts.
• The deposit insurance facility provided by the DICGC is not available to NBFC depositors.

Consequently, while NBFCs provide various financial services like loans and investments, they lack the legal authority to provide cheque-based transaction facilities.