Which of the following functions can be performed by a Payment bank 1 Opening current deposit accoun...........

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Which of the following functions can be performed by a Payment bank?

1. Opening current deposit accounts

2. Opening Demand deposit accounts

3. Accept NRI deposits

4. Distribution of insurances

5. Utility bill payments

Select the correct answer using the code given below:

1, 2 and 3 only

1, 3 and 5 only

2, 3, 4 and 5 only

1, 2, 4 and 5 only

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Explanation:

Payment banks: Payments banks are banks which offer basic savings, deposit, payment and remittance services to people without access to the formal banking system.Following functions can be performed by them:

Opening of demand deposits:both current and saving. (statement 1 and 2 correct)
Distribution of mutual funds,insurance and pension products.(statement 4 correct)
Utility bill payments like electricity bills etc. (statement 5 correct)

Functions prohibited for payment banks:
No NRI deposits (statement 3 incorrect)
No issuing of credit cards
Cannot undertake NBFCs activities