Question
The establishment of ‘Payment Banks' is being allowed in India to promote financial inclusionWhich of the following statements is/are correct in this context?
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.
Select the correct answer using the code given below.
(a) 1 and 2 only
(b) 1 and 3 only
(c) 2 only
(d) 1, 2 and 3
Answer:
B
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Explanation:
Mobile telephone companies and supermarket chains that are owned and controlled by residents are eligible to be promoters of Payment Banks: This statement is correct. As per the guidelines issued by the Reserve Bank of India (RBI), entities such as mobile telephone companies and supermarket chains that are owned and controlled by residents are eligible to be promoters of Payment Banks.
Payment Banks can issue both credit cards and debit cards: This statement is incorrect. Payment Banks are not allowed to issue credit cards. They can only issue debit cards and other prepaid payment instruments.
Payment Banks cannot undertake lending activities: This statement is correct. Payment Banks are not permitted to undertake lending activities. They primarily focus on providing basic banking services such as accepting deposits, facilitating remittances, and offering payment services.