{"id":91337,"date":"2025-06-01T10:53:41","date_gmt":"2025-06-01T10:53:41","guid":{"rendered":"https:\/\/exam.pscnotes.com\/mcq\/?p=91337"},"modified":"2025-06-01T10:53:41","modified_gmt":"2025-06-01T10:53:41","slug":"the-establishment-of-payment-banks-is-being-allowed-in-india-to-prom","status":"publish","type":"post","link":"https:\/\/exam.pscnotes.com\/mcq\/the-establishment-of-payment-banks-is-being-allowed-in-india-to-prom\/","title":{"rendered":"The establishment of &#8216;Payment Banks&#8217; is being allowed in India to prom"},"content":{"rendered":"<p>The establishment of &#8216;Payment Banks&#8217; is being allowed in India to promote financial inclusion. Which of the following statements is\/are correct in this context?<\/p>\n<ul>\n<li>Mobile telephone companies and supermarket chains that are owned and controlled by residents are eligible to be promoters of Payment Banks.<\/li>\n<li>Payment Banks can issue both credit cards and debit cards.<\/li>\n<li>Payment Banks cannot undertake lending activities.<\/li>\n<\/ul>\n<p>Select the correct answer using the code given below.<\/p>\n<p>[amp_mcq option1=&#8221;1 and 2 only&#8221; option2=&#8221;1 and 3 only&#8221; option3=&#8221;2 only&#8221; option4=&#8221;1, 2 and 3&#8243; correct=&#8221;option2&#8243;]<\/p>\n<div class=\"psc-box-pyq-exam-year-detail\">\n<div class=\"pyq-exam\">\n<div class=\"psc-heading\">This question was previously asked in<\/div>\n<div class=\"psc-title line-ellipsis\">UPSC IAS &#8211; 2016<\/div>\n<\/div>\n<div class=\"pyq-exam-psc-buttons\"><a href=\"\/pyq\/pyq-upsc-ias-2016.pdf\" target=\"_blank\" class=\"psc-pdf-button\" rel=\"noopener\">Download PDF<\/a><a href=\"\/pyq-upsc-ias-2016\" target=\"_blank\" class=\"psc-attempt-button\" rel=\"noopener\">Attempt Online<\/a><\/div>\n<\/div>\n<section id=\"pyq-correct-answer\">\nPayment Banks are a new model of banks conceptualized by the Reserve Bank of India (RBI) to enhance financial inclusion. They are allowed to accept restricted deposits, but their primary function is facilitating payments and remittances.<br \/>\n<\/section>\n<section id=\"pyq-key-points\">\nLet&#8217;s evaluate each statement:<br \/>\n1.  **Mobile telephone companies and supermarket chains that are owned and controlled by residents are eligible to be promoters of Payment Banks:** The RBI guidelines for licensing of Payment Banks specify that various entities including non-bank Pre-paid Payment Instrument (PPI) issuers, NBFCs, corporate business correspondents, mobile telephone companies, supermarket chains, and public sector entities can be promoters. Entities must be owned and controlled by residents. This statement is correct.<br \/>\n2.  **Payment Banks can issue both credit cards and debit cards:** Payment Banks can issue ATM\/Debit Cards. However, they are explicitly NOT allowed to issue Credit Cards. This statement is incorrect.<br \/>\n3.  **Payment Banks cannot undertake lending activities:** One of the key restrictions on Payment Banks is that they cannot undertake lending activities, either directly or indirectly. Their role is focused on deposit acceptance (up to a certain limit) and payments\/remittances. This statement is correct.<br \/>\n<\/section>\n<section id=\"pyq-additional-information\">\nPayment Banks can accept demand deposits up to a certain limit per individual customer (initially \u20b91 lakh, later increased). They can facilitate domestic remittances and payments, provide internet banking and mobile banking. They must maintain a certain percentage of their deposits in government securities and other approved instruments.<br \/>\n<\/section>\n","protected":false},"excerpt":{"rendered":"<p>The establishment of &#8216;Payment Banks&#8217; 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. &#8230; <\/p>\n<p class=\"read-more-container\"><a title=\"The establishment of &#8216;Payment Banks&#8217; is being allowed in India to prom\" class=\"read-more button\" href=\"https:\/\/exam.pscnotes.com\/mcq\/the-establishment-of-payment-banks-is-being-allowed-in-india-to-prom\/#more-91337\">Detailed Solution<span class=\"screen-reader-text\">The establishment of &#8216;Payment Banks&#8217; is being allowed in India to prom<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1092],"tags":[1098,1120,1190],"class_list":["post-91337","post","type-post","status-publish","format-standard","hentry","category-upsc-ias","tag-1098","tag-economic-development","tag-money-banking","no-featured-image-padding"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v22.2 (Yoast SEO v23.3) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>The establishment of &#039;Payment Banks&#039; is being allowed in India to prom<\/title>\n<meta name=\"description\" content=\"Payment Banks are a new model of banks conceptualized by the Reserve Bank of India (RBI) to enhance financial inclusion. They are allowed to accept restricted deposits, but their primary function is facilitating payments and remittances. Let&#039;s evaluate each statement: 1. **Mobile telephone companies and supermarket chains that are owned and controlled by residents are eligible to be promoters of Payment Banks:** The RBI guidelines for licensing of Payment Banks specify that various entities including non-bank Pre-paid Payment Instrument (PPI) issuers, NBFCs, corporate business correspondents, mobile telephone companies, supermarket chains, and public sector entities can be promoters. Entities must be owned and controlled by residents. This statement is correct. 2. **Payment Banks can issue both credit cards and debit cards:** Payment Banks can issue ATM\/Debit Cards. However, they are explicitly NOT allowed to issue Credit Cards. This statement is incorrect. 3. **Payment Banks cannot undertake lending activities:** One of the key restrictions on Payment Banks is that they cannot undertake lending activities, either directly or indirectly. Their role is focused on deposit acceptance (up to a certain limit) and payments\/remittances. This statement is correct.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/exam.pscnotes.com\/mcq\/the-establishment-of-payment-banks-is-being-allowed-in-india-to-prom\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"The establishment of &#039;Payment Banks&#039; is being allowed in India to prom\" \/>\n<meta property=\"og:description\" content=\"Payment Banks are a new model of banks conceptualized by the Reserve Bank of India (RBI) to enhance financial inclusion. They are allowed to accept restricted deposits, but their primary function is facilitating payments and remittances. Let&#039;s evaluate each statement: 1. **Mobile telephone companies and supermarket chains that are owned and controlled by residents are eligible to be promoters of Payment Banks:** The RBI guidelines for licensing of Payment Banks specify that various entities including non-bank Pre-paid Payment Instrument (PPI) issuers, NBFCs, corporate business correspondents, mobile telephone companies, supermarket chains, and public sector entities can be promoters. Entities must be owned and controlled by residents. This statement is correct. 2. **Payment Banks can issue both credit cards and debit cards:** Payment Banks can issue ATM\/Debit Cards. However, they are explicitly NOT allowed to issue Credit Cards. This statement is incorrect. 3. **Payment Banks cannot undertake lending activities:** One of the key restrictions on Payment Banks is that they cannot undertake lending activities, either directly or indirectly. Their role is focused on deposit acceptance (up to a certain limit) and payments\/remittances. This statement is correct.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/exam.pscnotes.com\/mcq\/the-establishment-of-payment-banks-is-being-allowed-in-india-to-prom\/\" \/>\n<meta property=\"og:site_name\" content=\"MCQ and Quiz for Exams\" \/>\n<meta property=\"article:published_time\" content=\"2025-06-01T10:53:41+00:00\" \/>\n<meta name=\"author\" content=\"rawan239\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"rawan239\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<!-- \/ Yoast SEO Premium plugin. -->","yoast_head_json":{"title":"The establishment of 'Payment Banks' is being allowed in India to prom","description":"Payment Banks are a new model of banks conceptualized by the Reserve Bank of India (RBI) to enhance financial inclusion. They are allowed to accept restricted deposits, but their primary function is facilitating payments and remittances. Let's evaluate each statement: 1. **Mobile telephone companies and supermarket chains that are owned and controlled by residents are eligible to be promoters of Payment Banks:** The RBI guidelines for licensing of Payment Banks specify that various entities including non-bank Pre-paid Payment Instrument (PPI) issuers, NBFCs, corporate business correspondents, mobile telephone companies, supermarket chains, and public sector entities can be promoters. Entities must be owned and controlled by residents. This statement is correct. 2. **Payment Banks can issue both credit cards and debit cards:** Payment Banks can issue ATM\/Debit Cards. However, they are explicitly NOT allowed to issue Credit Cards. This statement is incorrect. 3. **Payment Banks cannot undertake lending activities:** One of the key restrictions on Payment Banks is that they cannot undertake lending activities, either directly or indirectly. Their role is focused on deposit acceptance (up to a certain limit) and payments\/remittances. This statement is correct.","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/exam.pscnotes.com\/mcq\/the-establishment-of-payment-banks-is-being-allowed-in-india-to-prom\/","og_locale":"en_US","og_type":"article","og_title":"The establishment of 'Payment Banks' is being allowed in India to prom","og_description":"Payment Banks are a new model of banks conceptualized by the Reserve Bank of India (RBI) to enhance financial inclusion. They are allowed to accept restricted deposits, but their primary function is facilitating payments and remittances. Let's evaluate each statement: 1. **Mobile telephone companies and supermarket chains that are owned and controlled by residents are eligible to be promoters of Payment Banks:** The RBI guidelines for licensing of Payment Banks specify that various entities including non-bank Pre-paid Payment Instrument (PPI) issuers, NBFCs, corporate business correspondents, mobile telephone companies, supermarket chains, and public sector entities can be promoters. Entities must be owned and controlled by residents. This statement is correct. 2. **Payment Banks can issue both credit cards and debit cards:** Payment Banks can issue ATM\/Debit Cards. However, they are explicitly NOT allowed to issue Credit Cards. This statement is incorrect. 3. **Payment Banks cannot undertake lending activities:** One of the key restrictions on Payment Banks is that they cannot undertake lending activities, either directly or indirectly. Their role is focused on deposit acceptance (up to a certain limit) and payments\/remittances. This statement is correct.","og_url":"https:\/\/exam.pscnotes.com\/mcq\/the-establishment-of-payment-banks-is-being-allowed-in-india-to-prom\/","og_site_name":"MCQ and Quiz for Exams","article_published_time":"2025-06-01T10:53:41+00:00","author":"rawan239","twitter_card":"summary_large_image","twitter_misc":{"Written by":"rawan239","Est. reading time":"2 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"WebPage","@id":"https:\/\/exam.pscnotes.com\/mcq\/the-establishment-of-payment-banks-is-being-allowed-in-india-to-prom\/","url":"https:\/\/exam.pscnotes.com\/mcq\/the-establishment-of-payment-banks-is-being-allowed-in-india-to-prom\/","name":"The establishment of 'Payment Banks' is being allowed in India to prom","isPartOf":{"@id":"https:\/\/exam.pscnotes.com\/mcq\/#website"},"datePublished":"2025-06-01T10:53:41+00:00","dateModified":"2025-06-01T10:53:41+00:00","author":{"@id":"https:\/\/exam.pscnotes.com\/mcq\/#\/schema\/person\/5807dafeb27d2ec82344d6cbd6c3d209"},"description":"Payment Banks are a new model of banks conceptualized by the Reserve Bank of India (RBI) to enhance financial inclusion. They are allowed to accept restricted deposits, but their primary function is facilitating payments and remittances. Let's evaluate each statement: 1. **Mobile telephone companies and supermarket chains that are owned and controlled by residents are eligible to be promoters of Payment Banks:** The RBI guidelines for licensing of Payment Banks specify that various entities including non-bank Pre-paid Payment Instrument (PPI) issuers, NBFCs, corporate business correspondents, mobile telephone companies, supermarket chains, and public sector entities can be promoters. Entities must be owned and controlled by residents. This statement is correct. 2. **Payment Banks can issue both credit cards and debit cards:** Payment Banks can issue ATM\/Debit Cards. However, they are explicitly NOT allowed to issue Credit Cards. This statement is incorrect. 3. **Payment Banks cannot undertake lending activities:** One of the key restrictions on Payment Banks is that they cannot undertake lending activities, either directly or indirectly. Their role is focused on deposit acceptance (up to a certain limit) and payments\/remittances. This statement is correct.","breadcrumb":{"@id":"https:\/\/exam.pscnotes.com\/mcq\/the-establishment-of-payment-banks-is-being-allowed-in-india-to-prom\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/exam.pscnotes.com\/mcq\/the-establishment-of-payment-banks-is-being-allowed-in-india-to-prom\/"]}]},{"@type":"BreadcrumbList","@id":"https:\/\/exam.pscnotes.com\/mcq\/the-establishment-of-payment-banks-is-being-allowed-in-india-to-prom\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/exam.pscnotes.com\/mcq\/"},{"@type":"ListItem","position":2,"name":"UPSC IAS","item":"https:\/\/exam.pscnotes.com\/mcq\/category\/upsc-ias\/"},{"@type":"ListItem","position":3,"name":"The establishment of &#8216;Payment Banks&#8217; is being allowed in India to prom"}]},{"@type":"WebSite","@id":"https:\/\/exam.pscnotes.com\/mcq\/#website","url":"https:\/\/exam.pscnotes.com\/mcq\/","name":"MCQ and Quiz for Exams","description":"","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/exam.pscnotes.com\/mcq\/?s={search_term_string}"},"query-input":"required name=search_term_string"}],"inLanguage":"en-US"},{"@type":"Person","@id":"https:\/\/exam.pscnotes.com\/mcq\/#\/schema\/person\/5807dafeb27d2ec82344d6cbd6c3d209","name":"rawan239","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/exam.pscnotes.com\/mcq\/#\/schema\/person\/image\/","url":"https:\/\/secure.gravatar.com\/avatar\/761a7274f9cce048fa5b921221e7934820d74514df93ef195a9d22af0c1c9001?s=96&d=mm&r=g","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/761a7274f9cce048fa5b921221e7934820d74514df93ef195a9d22af0c1c9001?s=96&d=mm&r=g","caption":"rawan239"},"sameAs":["https:\/\/exam.pscnotes.com"],"url":"https:\/\/exam.pscnotes.com\/mcq\/author\/rawan239\/"}]}},"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/posts\/91337","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/comments?post=91337"}],"version-history":[{"count":0,"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/posts\/91337\/revisions"}],"wp:attachment":[{"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/media?parent=91337"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/categories?post=91337"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/tags?post=91337"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}