Consider the following statements regarding Payment Banks in India:
1. They were conceptualized by the Reserve Bank of India (RBI).
2. They can accept demand deposits up to ₹250,000 per customer.
3. They are allowed to issue both debit and credit cards.
How many of the above statements are correct?
(a) Only one
(b) Only two
(c) All three
(d) None
Explanation
Payment banks are specialized financial institutions designed to provide basic banking services to the underbanked and unbanked population. They offer a limited range of products and services, focusing on facilitating financial transactions and promoting financial inclusion. Statement 1 is correct: Payments Banks were conceptualized by the Reserve Bank of India (RBI), on the recommendations of the Nachiket Mor Committee.
Statement 2 is not correct: As of now, Customers can open savings and current accounts with a maximum balance limit of ₹200,000.
Statement 3 is not correct: Payments Banks can issue only debit cards. Unlike traditional banks, payment banks cannot issue loans or credit cards. Their primary function is to provide safe and convenient access to banking services, such as deposits, withdrawals, remittances, and payments, primarily through digital channels.
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