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.
- A. 1 and 2 only
- B. 1 and 3 only
- C. 2 only
- D. 1, 2 and 3
Answer: B
Explanation
In August 2015, Reserve Bank of India granted ‘in-principle’ approval to 11 applicants to start payments banks. These include Reliance Industries, Airtel M Commerce Services, Tech Mahindra, Vodafone m- pesa, Aditya Birla Nuvo, Department of Posts, Cholamandalam Distribution Services, Fino PayTech, PayTm, National Securities Depository Ltd (NSDL) and Sun Pharma. They can issue debit cards but not credit cards.FDI of 74% is allowed in these banks.