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? 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.
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A hard Economy multiple-choice question from UPSC Prelims 2016. Attempt it above, then check the correct answer and detailed explanation below.
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Correct answer: B. 1 and 3 only
Statements 1 and 3 are correct — resident-owned mobile companies and supermarket chains can promote Payment Banks, and Payment Banks cannot lend. Statement 2 is wrong — Payment Banks may issue debit cards but not credit cards. So 1 and 3 only — option (b).
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