UPSC CSE Prelims
Question 65
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.
View correct answer and explanation
Correct answer: B
Correct Option: B
Explanation: Payments banks could be promoted by eligible resident-controlled enterprises; they may accept deposits and issue debit/ATM cards but may not extend credit or issue credit cards.
Statement/Pair-wise Analysis:
Statement/Item 1: Correct - Eligible promoters include telecom and retail-chain businesses meeting RBI conditions.
Statement/Item 2: Incorrect - Payments banks may issue debit/ATM cards, not credit cards.
Statement/Item 3: Correct - They are prohibited from undertaking lending activities.
Option-wise Analysis:
A: Incorrect - includes incorrect statement/item 2; omits correct statement/item 3.
B: Correct - includes all and only the true statements/items.
C: Incorrect - includes incorrect statement/item 2; omits correct statement/items 1, 3.
D: Incorrect - includes incorrect statement/item 2.
Review Note: Deposit limits and permitted payment-bank activities have changed over time; these are the rules underlying the 2016 question.