BANKING GENERAL KNOWLEDGE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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It cannot issue loans
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It can accept deposits
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It can issue credit cards
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None of the above
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Detailed explanation-1: -Payment banks cannot issue credit cards. It cannot accept time deposits or NRI deposits. It cannot issue loans. It cannot set up subsidiaries to undertake non-banking financial activities.
Detailed explanation-2: -Definition: A payments bank is like any other bank, but operating on a smaller scale without involving any credit risk. In simple words, it can carry out most banking operations but can’t advance loans or issue credit cards.
Detailed explanation-3: -Detailed Solution. The Correct Answer is Option 4 i.e Credit cards can be issued.
Detailed explanation-4: -Issuance of ATM / Debit Cards. Payments banks, however, cannot issue credit cards.
Detailed explanation-5: -Payment Banks can Accept demand deposits. Payment Banks can Issue ATM/Debit cards, but can’t issue credit cards.