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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? 

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 Correct Answer Incorrect Answer
B 1 and 3 only Correct Answer Incorrect Answer
C 2 only Correct Answer Incorrect Answer
D 1, 2 and 3 Correct Answer Incorrect Answer
E 3 only Correct Answer Incorrect Answer

Solution

They can enable transfers and remittance through mobile phones. The RBI guidelines say that the payments bank cannot undertake lending activities. Mobile phone companies and supermarket eligible. But, Payment banks can’t issue credit card or give loans. 

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