What Are Payment Banks? – Indian Economy

Table of Contents

PAYMENTS BANK

Payments Bank cannot give out Loans on their own but can give out loans through a signed bank as their Agent.
Eg: PayTm Payment Bank acts as an agent of Federal Bank, IndusIndian Bank
IndiaPost Payment Bank gives house loans through HDFC Bank.
- Basel-III Norms are applicable
- Payments Bank can sell Mutual Fund, Pension,Insurance Policies with approval of respective Regulators.

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? (Prelims 2016)
1. Mobile telephone companies and supermarket chains that are owned and controlled by residents are eligible to be promoters of Payment Banks.
2. Payment Banks can issue both credit cards and debit cards.
3. Payment Banks cannot undertake lending activities.
Select the correct answer using the code given below.
(a) 1 and 2 only
(b) 1 and 3 only
(c) 2 only
(d) 1, 2 and 3