Consider the following statements regarding the interconnectedness of the Non-Banking Financial Company (NBFC) sector with banks:

1. NBFCs account for nearly 30 per cent of the total bank credit in India.

2. NBFCs' operations and risk profiles are fundamentally different from those of banks.

3. The increased dependence of NBFCs on banks for funding necessitates diversification of funding sources.

Which of the above statements is/are correct?

1
1 only
2
1 and 2
3
3 only
4
2 and 3
5
1, 2 and 3

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