BANKING GENERAL KNOWLEDGE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Acceptance of demand deposits. Payments bank will initially be restricted to holding a maximum balance of Rs. 100, 000 per individual customer.
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Distribution of non-risk sharing simple financial products like mutual fund units and insurance products, etc.
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BC of another bank, subject to the Reserve Bank guidelines on BCs.
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All of the above is Scope of activities of Payment Banks
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Detailed explanation-1: -Payments and remittance services through various channels. BC of another bank, subject to the Reserve Bank guidelines on BCs. Distribution of non-risk sharing simple financial products like mutual fund units and insurance products, etc.
Detailed explanation-2: -Scope of Activities in Payment Banks They do not issue credit cards. Accept for demand deposits up to 1 lakh per customer, initially rejected. Mutual fund units and insurance products distribution. They are allowed to invest only that money into the Government Securities received from the customer’s deposit.
Detailed explanation-3: -The main objective is to advance financial inclusion by offering banking and financial services to the unbanked and underbanked areas, helping the migrant labour force, low-income households, small entrepreneurs etc.
Detailed explanation-4: -Paytm Payments Bank, India Post Payments Bank, Fino Payments Bank and Aditya Birla Payments Bank have also launched services.
Detailed explanation-5: -As of December 2021, there are 6 Payments Bank in India: Airtel Payments Bank Ltd. India Post Payments Bank Ltd. FINO Payments Bank Ltd.