‘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?
- Mobile telephone companies and supermarket chains that are owned and controlled by residents are eligible to be promoters of Payment Banks.
- Payment Banks can issue both credit cards and debit cards.
- Payment Banks cannot undertake lending activities.
Select the correct answer using the code given below
[UPSC Civil Services Exam – 2016 Prelims]
(a) 1 and 2 only
(b) 1 and 3 only
(c) 2 only
(d) 1, 2 and 3
- Eligible to be promoters of Payment Banks:
- Existing non-bank Prepaid Payments Instrument (PPI) issuers,
- NBFCs Corporate Business Correspondents,
- Mobile phone companies, supermarket chains, public sector entities, real sector cooperatives, etc. Hence statement 1 is correct.
- Payment Banks can Accept demand deposits.
- Payment Banks can Issue ATM/Debit cards, but can’t issue credit cards. Hence statement 2 is incorrect.
- As per RBI guidelines, Payment Banks cannot undertake lending activities. Hence statement 3 is correct.