Payments Banks and Small Finance Banks were introduced by the RBI to further financial inclusion in India, but they have different permitted activities and business models. Payments Banks focus on small savings accounts, payments, and remittances, while Small Finance Banks are intended to provide financial services to underserved sections, including lending and accepting deposits.
Which among the following is incorrect with respect to Payment Banks and Small Finance Banks in India?
Asked in PPSC CS Prelims 2021 · Topic: Money & Banking (Commercial Banking: Structure, Functions, and Recent Reforms in India)
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Answer: D. Payments Banks cannot sell mutual funds, insurance and pension funds but Small Finance Banks can.
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