BANKING AFFAIRS

Detailed explanation-1: -The Reserve Bank of India (RBI) had issued guidelines for licensing of new banks in the private sector on February 22, 2013. Reserve Bank issued in-principle approval to two applicants and they have since established the banks as per the licences.

Detailed explanation-2: -The correct answer is Paytm Payments Bank. Paytm Payments Bank Ltd, an associate entity of Paytm, has gained RBI’s approval to function as a scheduled payments bank.

Detailed explanation-3: -“All stakeholders are advised to transact with only those existing PAs (a) who have been granted in-principle authorisation or (b) whose application is currently under process, ” RBI said in a release.

Detailed explanation-4: -RBI will create a framework for licensing small banks and other differentiated banks. Differentiated banks serving niche interests, local area banks, payment banks etc. are contemplated to meet credit and remittance needs of small businesses, unorganized sector, low income households, farmers and migrant work force”.