Economy2016
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
- Payment Banks can issue both credit cards and debit
- Payment Banks cannot undertake lending activities.
Select the correct answer using the code given below.
Explanation
The establishment of Payment Banks in India aims to enhance financial inclusion by providing basic banking services to underserved populations. Statement 1 is correct because mobile telephone companies and supermarket chains, which can serve as promoters, are essential in reaching wider consumer bases. Statement 3 is also correct, as Payment Banks are restricted from undertaking lending activities to maintain a focused approach on deposits and transactions, ensuring they serve as a safe and accessible entry point into the financial system. However, statement 2 is incorrect because Payment Banks can only issue debit cards and not credit cards, aligning with their mandate to provide low-risk banking services.