40. PayTm has recently launched a payment bank. Which of the following statements are true with regard to a payment bank?
i) They can undertake payment and remittance services ii) They are not subject to CRR ans SLR requirements as the other scheduled commercial banks
iii) They can issue debit cards and credit cards
40. PayTm has recently launched a payment bank. Which of the following statements are true with regard to a payment bank?
i) They can undertake payment and remittance services ii) They are not subject to CRR ans SLR requirements as the other scheduled commercial banks
iii) They can issue debit cards and credit cards
The correct option is A a) i only
A) Explanation:
Key facts on payment banks:
-
Customers can deposit only up to Rs 1,00,000.
-
Payments bank can issue ATM/debit cards but not credit cards.
-
Payments and remittance services through various channels can be done.
-
Customers will be able to buy insurance and mutual funds.
-
Bank would not carry out lending activities.
-
With this, the network of 1,54,000 post offices (including 1,30,000 rural post offices) will be offering banking services to the masses in the country.
-
Payments banks are targeting migrant labourers, low income households, small businesses, and other unorganised sector entities.
-
Initial capital required for a Payments bank is Rs 100 crore.
-
Eligibility: Existing pre-paid payment instrument issuers, individuals, professionals, NBFCs, corporate business correspondents, telecom companies, super-market chains, real estate sector cooperatives that are owned and controlled by residents and public sector entities may apply.
-
Promoter’s contribution initially must be 40% for the first 5 years. For foreign holding, it is up to 74% of paid-up capital, on a par with private banks.
-
The banks must maintain CRR, minimum 75% of demand deposits in government bonds of up to one year and maximum 25% in current and fixed deposits with other scheduled commercial banks for operational purposes and liquidity management
a) i only
A)
Explanation:
Key facts on payment banks:
-
Customers can deposit only up to Rs 1,00,000.
-
Payments bank can issue ATM/debit cards but not credit cards.
-
Payments and remittance services through various channels can be done.
-
Customers will be able to buy insurance and mutual funds.
-
Bank would not carry out lending activities.
-
With this, the network of 1,54,000 post offices (including 1,30,000 rural post offices) will be offering banking services to the masses in the country.
-
Payments banks are targeting migrant labourers, low income households, small businesses, and other unorganised sector entities.
-
Initial capital required for a Payments bank is Rs 100 crore.
-
Eligibility: Existing pre-paid payment instrument issuers, individuals, professionals, NBFCs, corporate business correspondents, telecom companies, super-market chains, real estate sector cooperatives that are owned and controlled by residents and public sector entities may apply.
-
Promoter’s contribution initially must be 40% for the first 5 years. For foreign holding, it is up to 74% of paid-up capital, on a par with private banks.
-
The banks must maintain CRR, minimum 75% of demand deposits in government bonds of up to one year and maximum 25% in current and fixed deposits with other scheduled commercial banks for operational purposes and liquidity management
