Prelims 2016 · Economy · Question 29
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?<br/>1. Mobile telephone companies and supermarket chains that are owned and controlled by residents are eligible to be promoters of Payment Banks.<br/>2. Payment Banks can issue both credit cards and debit cards.<br/>3. Payment Banks cannot undertake lending activities.<br/><br/>Select the correct answer using the code given below.
Answer
1 and 3 only
Correct. As per RBI guidelines for Payment Banks, entities such as mobile telephone companies and supermarket chains owned and controlled by residents were eligible to promote them.
Incorrect. Payment Banks can issue ATM/debit cards, but not credit cards.
Correct. Payment Banks are not allowed to undertake lending activities; they mainly accept small deposits and provide payments/remittance services.
Hence, statements 1 and 3 only are correct.