Civil Services Prep

Prelims 2016 · Economy · Question 29

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?<br/>1. Mobile telephone companies and supermarket chains that are owned and controlled by residents are eligible to be promoters of Payment Banks.<br/>2. Payment Banks can issue both credit cards and debit cards.<br/>3. Payment Banks cannot undertake lending activities.<br/><br/>Select the correct answer using the code given below.

  1. 1 and 2 only
  2. 1 and 3 only
  3. 2 only
  4. 1, 2 and 3

Answer

1 and 3 only

  1. Correct. As per RBI guidelines for Payment Banks, entities such as mobile telephone companies and supermarket chains owned and controlled by residents were eligible to promote them.

  2. Incorrect. Payment Banks can issue ATM/debit cards, but not credit cards.

  3. Correct. Payment Banks are not allowed to undertake lending activities; they mainly accept small deposits and provide payments/remittance services.

Hence, statements 1 and 3 only are correct.

  1. The artificially fixed rupee-sterling exchange rate prescribed by the Hilton-Young Commission (1926) was…
  2. In what way(s) does the Vizhinjam International Seaport represent a structural shift in India's maritime trade…
  3. Which of the following is/are the most significant implication(s) of obtaining Oeko-Tex certification for Eri…
  4. Consider the following statements with reference to the Sagarmala Programme of the Government of India : I.…
  5. An e-commerce revenue model where the seller has control over pricing but doesn't keep products in stock and…
  6. Which one of the following correctly represents the three key sub-indices of the Financial Inclusion Index…