Statement 1 is Correct: Non-Banking Financial Companies (NBFCs) are strictly prohibited from accepting demand deposits (such as savings or current accounts that are repayable on demand). While certain NBFCs can accept term/fixed deposits, they can only do so if they hold a specific deposit-taking Certificate of Registration from the RBI.

Statement 2 is Incorrect: It is a misconception that all NBFCs must register with the RBI. To avoid dual regulation, financial companies regulated by other statutory bodies are exempted from RBI registration. Examples include Venture Capital Funds and Merchant Banks (regulated by SEBI), Insurance companies (regulated by IRDAI), Nidhi companies (regulated by the Ministry of Corporate Affairs), and Chit Fund companies (regulated by State Governments).

Statement 3 is Incorrect: Unlike traditional commercial banks, NBFCs do not form part of the national payment and settlement system. Consequently, they cannot issue cheques drawn on themselves.

Statement 4 is Correct: The deposit insurance cover provided by the Deposit Insurance and Credit Guarantee Corporation (DICGC)—which protects deposits up to ₹5 lakh—is exclusively available to bank depositors. This facility is not available to depositors of NBFCs, even if the NBFC is legally authorized to accept term deposits.

Therefore, option A is the correct answer.