Payment Banks in India
Question
The establishment of Payment Banks is being allowed in India to promote financial inclusion.
Which of the following statements is/are correct in this context?
Select the correct answer using the code given below.
- 1.
Mobile telephone companies and supermarket chains that are owned and controlled by residents are eligible to be promoters of Payment Banks.
- 2.
Payment Banks can issue both credit cards and debit cards.
- 3.
Payment Banks cannot undertake lending activities.
Options
1 and 2 only
1 and 3 only
2 only
1, 2 and 3
Explanation
Payment Banks were introduced by RBI guidelines in 2015. Statement 1 is correct - mobile telephone companies, supermarket chains, and other entities owned and controlled by residents can be promoters of Payment Banks, aiming to extend financial inclusion. Statement 2 is incorrect - Payment Banks can issue only debit cards, not credit cards. They have restricted operations and cannot undertake credit activities. Statement 3 is correct - Payment Banks cannot undertake lending activities; they can only accept deposits and provide basic banking and payment services. Statements 1 and 3 are correct. > Key feature: Payment Banks = Deposits + Debit Cards + Payments, NO Loans/Credit Cards. Answer: b.
Question details
Year
2016
Paper
GS Paper 1
Question
Q4
Subject
Economy
Sub-topic
Financial Institutions and Banking
Type
Statement-based
Difficulty
Medium
Nature
Current-affairs-linked
Source hint
Current Affairs 2015-2016
See all questions on Financial Institutions and Banking
Browse every tagged question across all years