UPSC Previous Year Question | Prelims GS | 2016

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 Payment Banks. 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.

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

Answer

Correct Answer

1 and 3 only

Explanation

Resident-owned mobile telephone companies and supermarket chains are eligible promoters of Payment Banks, and Payment Banks are barred from lending activities, so statements 1 and 3 are correct. Payment Banks can issue debit cards but not credit cards, making statement 2 incorrect.

Topics: banking, financial inclusion, indian economy, payment banks