With reference to the Non-banking Financial Companies (NBFCs) in India, consider the following statements : 1. They cannot engage in the acquisition of securities issued by the government. 2. They cannot accept demand deposits like Savings Account. Which of the statements given above is/are correct?

1. The question asks about the regulations and characteristics of Non-banking Financial Companies (NBFCs) in India. 2. Statement 1: NBFCs are allowed to engage in the acquisition of securities issued by the government (G-Secs) as part of their investment activities, subject to regulatory guidelines. Some NBFCs, like Primary Dealers, actively trade in government securities. Therefore, the statement that they cannot engage in this activity is incorrect. 3. Statement 2: A key distinction between banks and NBFCs is that NBFCs are prohibited from accepting demand deposits. Demand deposits are funds withdrawable on demand, such as those held in current accounts or Savings Accounts. NBFCs can accept time deposits (subject to regulations), but not demand deposits. Therefore, the statement that they cannot accept demand deposits like Savings Account is correct. 4. Since only statement 2 is correct, option (B) is the answer.