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:
- 1 and 2 only
- 1 and 3 only
- 2 only
- 1, 2 and 3
Explanation
Statement 1 is correct
- Eligible promoters: NBFCs, individuals, corporations, mobile phone companies, supermarket chains, real estate cooperatives, and public sector entities.
Statement 2 is incorrect and statement 3 is correct
- What is not allowed?
- No credit risk involved. (it can’t advance loans or issue credit cards)
- They cannot accept NRI deposits.
- What is allowed?
- Can accept demand deposits (up to Rs 1 lakh).
- Offer remittance services.
- Mobile payments/transfers/purchases.
- Other banking services like ATM/debit cards, net banking and third-party fund transfers.
