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100+ Free IIBF NBFC Practice Questions

Pass your IIBF Certificate Examination in Non-Banking Financial Companies (India) exam on the first try — instant access, no signup required.

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2026 Statistics

Key Facts: IIBF NBFC Exam

120 MCQs / 100 marks

Official IIBF exam structure

IIBF Rules & Syllabus 2026

50/100

Minimum passing marks

IIBF Rules & Syllabus 2026

₹1,100 / ₹1,600

Member / non-member exam fee (+ GST)

IIBF Rules & Syllabus 2026

15%

Minimum CRAR requirement for systemically important NBFCs

RBI Master Directions

₹10 crore

Minimum NOF requirement by March 2027 for ICCs/Factors/MFIs

RBI SBR Guidelines

60 months

Maximum tenure for public deposits in deposit-taking NBFCs

RBI Public Deposit Directions

IIBF NBFC certificate: 120 MCQs for 100 marks in 2 hours, English, remote-proctored, no negative marking; pass at 50/100. Fees ₹1,100 (members) / ₹1,600 (non-members) per attempt + taxes. Eligibility: 12th pass/equivalent or IIBF BC/BF.

Sample IIBF NBFC Practice Questions

Try these sample questions to test your IIBF NBFC exam readiness. Each question includes a detailed explanation. Start the interactive quiz above for the full 100+ question experience with AI tutoring.

1Which of the following is a primary distinction between Non-Banking Financial Companies (NBFCs) and Scheduled Commercial Banks in India regarding deposit acceptance?
A.NBFCs cannot accept any form of public deposits, whereas banks can.
B.NBFCs cannot accept savings deposits and current deposits payable on demand, whereas banks can.
C.NBFCs can only accept interest-free deposits, whereas banks can pay interest.
D.NBFCs can issue cheques drawn on themselves, whereas banks cannot.
Explanation: NBFCs cannot accept demand deposits (such as savings and current accounts) which are repayable on demand. Scheduled Commercial Banks are authorized to accept both demand and time deposits.
2Which committee recommended the introduction of a comprehensive regulatory framework for NBFCs including compulsory registration and maintenance of liquid assets in India?
A.Urjit Patel Committee
B.Shah Committee
C.Nachiket Mor Committee
D.Narasimham Committee II
Explanation: The Shah Committee (1992) recommended compulsory registration of NBFCs, maintenance of liquid assets, and compliance with prudential norms to protect depositor interests.
3Which of the following regulators is responsible for governing Nidhi Companies in India?
A.Reserve Bank of India
B.Securities and Exchange Board of India
C.Ministry of Corporate Affairs
D.National Housing Bank
Explanation: Nidhi Companies (or Mutual Benefit Societies) are regulated and governed by the Ministry of Corporate Affairs (MCA) under Section 406 of the Companies Act, 2013.
4With effect from 2019, the regulatory control over Housing Finance Companies (HFCs) was transferred to which authority?
A.National Housing Bank (NHB)
B.Reserve Bank of India (RBI)
C.Securities and Exchange Board of India (SEBI)
D.Ministry of Finance
Explanation: In 2019, the regulatory powers over Housing Finance Companies (HFCs) were transferred from the National Housing Bank (NHB) to the Reserve Bank of India (RBI).
5What is the primary role of Non-Banking Financial Companies (NBFCs) in the Indian financial system?
A.To offer checking account facilities to rural customers
B.To provide credit to unbanked sectors and niche markets where banks have limited outreach
C.To act as the sole issuer of currency notes
D.To manage the government's fiscal deficit
Explanation: NBFCs play a critical role in financial inclusion by delivering tailored credit to unbanked/underbanked sectors, small businesses, and niche segments like microfinance and vehicle loans.
6Which of the following payments/settlement system features is NOT available to NBFCs in India?
A.Ability to issue co-branded credit cards
B.Access to the payment and settlement system to issue cheques drawn on themselves
C.Use of RTGS and NEFT for business payments
D.Issuance of prepaid payment instruments (PPIs) upon approval
Explanation: NBFCs do not form part of the payment and settlement system and cannot issue cheques drawn on themselves, unlike banks.
7Are deposits held with deposit-accepting NBFCs (NBFC-D) covered by the Deposit Insurance and Credit Guarantee Corporation (DICGC)?
A.Yes, up to a limit of ₹5 lakh per depositor.
B.Yes, up to a limit of ₹1 lakh per depositor.
C.No, the insurance cover is not available to deposits in NBFCs.
D.Yes, but only if the NBFC is owned by the government.
Explanation: Unlike bank deposits, public deposits held in deposit-accepting NBFCs are NOT insured by DICGC. Depositors must exercise caution and review credit ratings.
8To be classified as a Systemically Important Core Investment Company (CIC-ND-SI), what minimum percentage of its net assets must be held in the form of investment in equity, preference shares, debentures, or loans in group companies?
A.50%
B.60%
C.75%
D.90%
Explanation: A Core Investment Company (CIC) must hold not less than 90% of its net assets in the form of investments in equity shares, preference shares, bonds, debentures, debt, or loans in group companies.
9An Infrastructure Finance Company (NBFC-IFC) must deploy at least what percentage of its total assets in infrastructure loans?
A.50%
B.60%
C.75%
D.85%
Explanation: Under RBI guidelines, an Infrastructure Finance Company (NBFC-IFC) is required to deploy a minimum of 75% of its total assets in infrastructure loans.
10How can an Infrastructure Debt Fund Non-Banking Financial Company (IDF-NBFC) primarily raise its financial resources?
A.By accepting public deposits with a maturity of 1 to 5 years
B.By issuing long-term bonds or through External Commercial Borrowings (ECBs)
C.By borrowing directly from agricultural cooperative banks
D.By issuing equity shares only to retail individual investors
Explanation: IDF-NBFCs raise funds through the issuance of rupee or foreign currency-denominated long-term bonds (with a minimum maturity of 5 years) and through External Commercial Borrowings (ECBs). They cannot accept public deposits.

About the IIBF NBFC Exam

The IIBF Certificate Examination in Non-Banking Financial Companies (NBFC) provides a comprehensive overview of the NBFC sector in India, focusing on RBI scale-based regulation (SBR), compliance, corporate governance, resource mobilization, lending, credit appraisal, customer service, and investments. Designed for bankers, finance professionals, and NBFC employees.

Assessment

Single remote-proctored online MCQ paper in English. 120 questions for 100 marks; no negative marking. Subject: NBFC regulation, operations, credit, and compliance.

Time Limit

2 hours

Passing Score

50 out of 100

Exam Fee

Members ₹1,100 / Non-members ₹1,600 per attempt (+ convenience charges & taxes) (Indian Institute of Banking & Finance (IIBF))

IIBF NBFC Exam Content Outline

20%

Unit 1 — Indian Financial System & Role of NBFCs

Overview of the financial system, evolution of NBFCs, credit intermediation role, and key differences from scheduled commercial banks.

40%

Unit 2 — Regulatory Requirements, SBR & Compliance

RBI Scale-Based Regulation (SBR) framework, Base/Middle/Upper/Top layers, Net Owned Funds (NOF) glide path, Capital Adequacy (CRAR), exposure limits, provisioning norms, compliance, and corporate governance.

40%

Unit 3 — Operational Aspects & Credit Administration

Resource mobilization (public deposits, commercial paper, debentures, ECBs), loans and advances, credit appraisal process, risk management, Customer Fair Practices Code, and investment guidelines.

How to Pass the IIBF NBFC Exam

What You Need to Know

  • Passing score: 50 out of 100
  • Assessment: Single remote-proctored online MCQ paper in English. 120 questions for 100 marks; no negative marking. Subject: NBFC regulation, operations, credit, and compliance.
  • Time limit: 2 hours
  • Exam fee: Members ₹1,100 / Non-members ₹1,600 per attempt (+ convenience charges & taxes)

Keys to Passing

  • Complete 500+ practice questions
  • Score 80%+ consistently before scheduling
  • Focus on highest-weighted sections
  • Use our AI tutor for tough concepts

IIBF NBFC Study Tips from Top Performers

1Study the details of the Scale-Based Regulation (SBR) framework carefully, specifically which NBFCs are categorized under the Base Layer (NBFC-BL), Middle Layer (NBFC-ML), and Upper Layer (NBFC-UL).
2Memorize the Net Owned Fund (NOF) requirements and the glide path to ₹10 crore by March 31, 2027 for NBFC-ICC, NBFC-MFI, and NBFC-Factors.
3Be clear on the difference between deposit-taking NBFCs (NBFC-D) and non-deposit-taking NBFCs (NBFC-ND) regarding public deposit thresholds, interest rate ceilings, and maximum tenure (60 months).
4Understand the capital adequacy requirement (CRAR) of 15% (minimum Tier-I of 10%) for NBFCs in the Middle and Upper layers.
5Revise corporate governance norms, including the constitution of the Audit Committee, Nomination and Remuneration Committee, and Risk Management Committee under SBR.
6Familiarize yourself with the Fair Practices Code (FPC), ombudsman scheme, and customer protection guidelines applicable to NBFCs.

Frequently Asked Questions

What is the IIBF Certificate Examination in Non-Banking Financial Companies?

It is an IIBF certification course for bankers and finance professionals covering the regulatory, operational, and financial management of NBFCs in India, including RBI's latest Scale-Based Regulation (SBR).

What is the exam pattern and passing marks?

The official exam consists of 120 objective multiple-choice questions (MCQs) for 100 marks. The duration is 2 hours (120 minutes) and the passing score is 50 marks. There is no negative marking.

What are the registration fees?

The registration fee is ₹1,100 for IIBF members and ₹1,600 for non-members per attempt, plus applicable GST and convenience charges.

Who is eligible to take this exam?

Any candidate who has passed the 12th standard (or equivalent) or who has completed the IIBF BC/BF examination is eligible to register.

Are these official IIBF exam questions?

No. These are original practice questions designed by OpenExamPrep to align with the official 2026 syllabus units and scale-based regulation guidelines.