Consider the following regarding 39 Payments Banks 39 1 The payments bank cannot unde...........

Economic Affairs Types of Banks and Banking

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Consider the following regarding 'Payments Banks'-

1) The payments bank cannot undertake lending activities.

2) They are not required to maintain Cash Reserve Ratio (CRR) with the Reserve Bank.

3) Payments banks cannot issue credit cards.

Select the correct answer using codes given belowec

1 and 2

2 and 3

1 and 3

1, 2 and 3

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Explanation:

Second statement is incorrect regarding Payment Banks i.e. They are not required to maintain Cash Reserve Ratio (CRR) with the Reserve Bank

Payments banks is a new model of banks conceptualised by the Reserve Bank of India (RBI). These banks can accept a restricted deposit, which is currently limited to Rs. 95,000 per customer and may be increased further. These banks cannot issue loans and credit cards. Both current account and savings accounts can be operated by such banks. Payments banks can issue services like ATM cards, debit cards, net-banking and mobile-banking. Bharti Airtel set up India's first live payments bank.