Question

Which of the following type of banks are not allowed to give loans?

A Rural Cooperative Bank Correct Answer Incorrect Answer
B Urban Cooperative Banks Correct Answer Incorrect Answer
C Local Area Bank Correct Answer Incorrect Answer
D Regional Rural Bank Correct Answer Incorrect Answer
E Payment Bank Correct Answer Incorrect Answer

Solution

Payment Bank licences are granted by RBI to make basic banking facilities available to unbanked/Under-banked section of the population. Payment banks can accept deposits of upto Rs 1 lakh and can do remittance. They are not allowed to give any kind of loans. 

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