What facilities are provided by the Payment Banks?
1. Fixed Deposits
2. Debit Cards
3. Credit Cards
4. Loans
Select the correct option from the codes given below:

Answer: [D] Only 2

Payment Banks: Scope of activities

Payment banks can accept demand deposits. This implies that customers can open savings accounts as well as current accounts; but NO time deposits (such as FDs).

  • An account balance cannot exceed Rs. 1 Lakh for an individual customer.
  • Payment Banks can issue ATM/debit cards but not credit cards.
  • Payment Banks can NOT give loans.
  • Payments and remittance services through various channels.

A payment bank can become Banking Correspondent of another bank and offer all products / services which a BC can offer.

Payment Banks can distribute non-risk sharing financial products like mutual fund units and insurance products, etc.

The revenue of these banks would come mainly from the transaction fees.

This question is a part of GKToday's Integrated IAS General Studies Module