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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 only
  • b)
    1 and 3 only
  • c)
    2 only
  • d)
    1, 2 and 3
Correct answer is option 'B'. Can you explain this answer?
Most Upvoted Answer
The establishment of payment banks isbeing allowed in India to promote...
Payment Banks in India

The Reserve Bank of India (RBI) has allowed the establishment of payment banks in India to promote financial inclusion. Payment banks are different from traditional banks as they cannot undertake lending activities. They can only accept deposits and provide payment services.

Eligibility of Promoters

The following entities are eligible to be promoters of payment banks:

1. Non-banking financial companies (NBFCs)
2. Corporate Business Correspondents (BCs)
3. Mobile telephone companies
4. Supermarket chains that are owned and controlled by residents

Therefore, statement 1 is correct.

Issuance of Cards

Payment banks can issue debit cards but not credit cards. Therefore, statement 2 is incorrect.

Lending Activities

Payment banks cannot undertake lending activities. They can only accept deposits and provide payment services. Therefore, statement 3 is correct.

Conclusion

In conclusion, statement 1 and 3 are correct while statement 2 is incorrect. Payment banks are a new category of banks in India that focus on providing payment services and promoting financial inclusion.
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Community Answer
The establishment of payment banks isbeing allowed in India to promote...
It's the mean of online transaction,from account to account as a payment bank has only the role to verify it no more adopted methods of off line
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The establishment of payment banks isbeing allowed in India to promote financialinclusion. Which of the following statementsis/are correct in this context?1. Mobile telephone companies and supermarketchains that are owned and controlled byresidents are eligible to be promoters ofpayment banks2. Payment banks can issue both credit cards anddebit cards3. Payment banks cannot undertake lendingactivitiesSelect the correct answer using the code givenbelow:a)1 onlyb)1 and 3 onlyc)2 onlyd)1, 2 and 3Correct answer is option 'B'. Can you explain this answer?
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