Payment Banks

This is a very easy question if you know the concept of a PAYMENT BANK, then is it’s quite factual.

If you don’t know, then we will think upon it. Why would RBI conceptualize Payment bank? Obvious answer would be to bring rural population into the banking fold (Banking Inclusion) so that people can park their excess money in the bank and get an interest.

At the same time RBI cannot make it like a normal bank. So there will be limitations. If you them directly it would be “non thinker” question. For those who don’t know it, this question that you should not leave but give a calculated guess.

So when I read the 2^nd and 3^rd statement I find them contradicting to each other.  Look in 2^nd statement it says it can issue credit cards and in 3^rd it says in it cannot give loan. If a bank can issue a credit card it should be eligible to lend money.

Either one of them is correct. 2 and 3 cannot exist together Option D out.

Now statement 1 is talking about big players, RESIDENT telephone companies and RESIDENT supermarket companies, now this seems logical from the part of RBI to give the rights to them because they are Indian residents and money will stay in India and get invested in India. So logically Statement 1 is correct and if you can remember some examples to Payment Banks in India like Aditya Birla, Airtel, Reliance etc. It would be much easier to think.

Look at statement 2, it says it can issue credit card. So this seems totally wrong because if a Payment bank can issue credit card too then there is hardly any difference from the normal bank. Then we are left with only one option that is B.

Payment banks cannot undertake lending seems concurrent with limitations, so statement 3 is correct.

Our answer is B) 1 and 3