Payment Banks are a differentiated category of banks aimed at promoting financial inclusion by providing small savings accounts, payments, and remittance services to migrant labour force, low income households, small businesses, unorganised sector entities and other users. They can accept demand deposits (current accounts and savings accounts) up to a certain limit per customer (initially ₹1 lakh, later increased to ₹2 lakh).
Payment Banks are different from other Commercial Banks in the following ways:
Asked in OPSC CS Prelims 2017 · Topic: Money & Banking (Commercial Banking: Structure, Functions, and Recent Reforms in India)
Show answer
Answer: D. Accept deposit, provide payments and remit‐ tances services, distribute third party financial products but are not allowed to lend or issue cards
More Economic Development questions
- Nationalisation of banks was done with the purpose of:
- Which Bank was included in the 2024 'Fortune Global 500 List' for the first time?
- Which of the following resulted from Bretton Woods Conference ?
- Which among the following is incorrect with respect to Payment Banks and Small Finance Banks in India?
- Which of the following is not a foreign bank in India ?
- ________ organization slapped fine to the companies for not appointing women directors.
- Choose the correct statement related to recent Bank mergers in India. (a) Large Banks will be able to borrow more from the market and thereby help the economy revive. (b) Bank merger will lead to increased operational efficiency of the banking sector
- In January 2019, Indian Government approved the merger of three Banks. Which of the following does not figure in merger?
