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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 paymentbanks.
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 and3 only
- c)2 only
- d)1,2 and 3
Correct answer is option 'B'. Can you explain this answer?
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The establishment of payment banks is being allowed in India to promo...
The correct answer is (b) 1 and 3 only. Payment banks in India are only allowed to offer certain services, such as accepting deposits and offering remittance services, and are not permitted to lend money or issue credit cards. However, mobile telephone companies and supermarket chains that are owned and controlled by residents are eligible to be promoters of payment banks.
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The establishment of payment banks is being allowed in India to promo...
Payment Bank Regulations in India
Payment banks play a crucial role in promoting financial inclusion in India by providing banking services to the unbanked population. Let's break down the statements provided in the question to understand the correct answer:
1. Eligibility of Promoters:
- Mobile telephone companies and supermarket chains owned and controlled by residents are indeed eligible to be promoters of payment banks. This is in line with the Reserve Bank of India's guidelines to encourage diverse entities to establish payment banks and expand financial services to underserved areas.
2. Issuance of Cards:
- Payment banks are allowed to issue debit cards, but they are not permitted to issue credit cards. The primary focus of payment banks is on providing basic banking services such as deposits and remittances, rather than extending credit facilities.
3. Lending Activities:
- Payment banks are restricted from undertaking lending activities. This restriction is in place to prevent payment banks from engaging in traditional banking functions like providing loans and credit facilities. Their main objective is to facilitate transactions and promote financial inclusion through accessible banking services.
Based on the explanations provided above, the correct answer to the question is option 'B' - 1 and 3 only. Payment banks can be promoted by eligible entities like mobile telephone companies and supermarket chains, they can issue debit cards but not credit cards, and they are not allowed to engage in lending activities.
Payment banks play a crucial role in promoting financial inclusion in India by providing banking services to the unbanked population. Let's break down the statements provided in the question to understand the correct answer:
1. Eligibility of Promoters:
- Mobile telephone companies and supermarket chains owned and controlled by residents are indeed eligible to be promoters of payment banks. This is in line with the Reserve Bank of India's guidelines to encourage diverse entities to establish payment banks and expand financial services to underserved areas.
2. Issuance of Cards:
- Payment banks are allowed to issue debit cards, but they are not permitted to issue credit cards. The primary focus of payment banks is on providing basic banking services such as deposits and remittances, rather than extending credit facilities.
3. Lending Activities:
- Payment banks are restricted from undertaking lending activities. This restriction is in place to prevent payment banks from engaging in traditional banking functions like providing loans and credit facilities. Their main objective is to facilitate transactions and promote financial inclusion through accessible banking services.
Based on the explanations provided above, the correct answer to the question is option 'B' - 1 and 3 only. Payment banks can be promoted by eligible entities like mobile telephone companies and supermarket chains, they can issue debit cards but not credit cards, and they are not allowed to engage in lending activities.
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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 byresidents are eligible to be promoters of paymentbanks.2. Payment banks can issue both credit cards and debit cards3. Payment banks cannot undertake lending activitiesSelect the correct answer using the code given below:a)1 onlyb)1 and3 onlyc)2 onlyd)1,2 and 3Correct answer is option 'B'. Can you explain this answer?
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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 byresidents are eligible to be promoters of paymentbanks.2. Payment banks can issue both credit cards and debit cards3. Payment banks cannot undertake lending activitiesSelect the correct answer using the code given below:a)1 onlyb)1 and3 onlyc)2 onlyd)1,2 and 3Correct answer is option 'B'. Can you explain this answer? for UPSC 2024 is part of UPSC preparation. The Question and answers have been prepared according to the UPSC exam syllabus. Information about 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 byresidents are eligible to be promoters of paymentbanks.2. Payment banks can issue both credit cards and debit cards3. Payment banks cannot undertake lending activitiesSelect the correct answer using the code given below:a)1 onlyb)1 and3 onlyc)2 onlyd)1,2 and 3Correct answer is option 'B'. Can you explain this answer? covers all topics & solutions for UPSC 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for 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 byresidents are eligible to be promoters of paymentbanks.2. Payment banks can issue both credit cards and debit cards3. Payment banks cannot undertake lending activitiesSelect the correct answer using the code given below:a)1 onlyb)1 and3 onlyc)2 onlyd)1,2 and 3Correct answer is option 'B'. Can you explain this answer?.
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 byresidents are eligible to be promoters of paymentbanks.2. Payment banks can issue both credit cards and debit cards3. Payment banks cannot undertake lending activitiesSelect the correct answer using the code given below:a)1 onlyb)1 and3 onlyc)2 onlyd)1,2 and 3Correct answer is option 'B'. Can you explain this answer? for UPSC 2024 is part of UPSC preparation. The Question and answers have been prepared according to the UPSC exam syllabus. Information about 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 byresidents are eligible to be promoters of paymentbanks.2. Payment banks can issue both credit cards and debit cards3. Payment banks cannot undertake lending activitiesSelect the correct answer using the code given below:a)1 onlyb)1 and3 onlyc)2 onlyd)1,2 and 3Correct answer is option 'B'. Can you explain this answer? covers all topics & solutions for UPSC 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for 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 byresidents are eligible to be promoters of paymentbanks.2. Payment banks can issue both credit cards and debit cards3. Payment banks cannot undertake lending activitiesSelect the correct answer using the code given below:a)1 onlyb)1 and3 onlyc)2 onlyd)1,2 and 3Correct answer is option 'B'. Can you explain this answer?.
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