Option 1 states that NBFCs cannot accept demand deposits. This means that NBFCs cannot accept deposits from customers that are withdrawable on demand. This statement is generally correct as NBFCs are not allowed to accept demand deposits like commercial banks. Instead, NBFCs typically raise funds through other means such as financial instruments, loans, and capital markets.

Option 2 states that NBFCs cannot give loans. This statement is incorrect. NBFCs are primarily engaged in the business of providing loans and advances to individuals, businesses, and other entities. They play an important role in providing alternative sources of credit in the financial system, especially to sectors or borrowers who may not have access to traditional banking services.

Option 3 states that NBFCs cannot issue cheques drawn on themselves. This statement is generally correct as NBFCs are not permitted to issue cheques in the same manner as commercial banks. However, they can issue other negotiable instruments such as demand drafts or pay orders.

Option 4 states that NBFCs cannot offer deposit insurance facility of Deposit Insurance and Credit Guarantee Corporation. This statement is generally correct as NBFCs are not eligible for the deposit insurance facility provided by the Deposit Insurance and Credit Guarantee Corporation. Deposit insurance is typically available only for