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UPSC 2016: 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.
(a)1 and 2 only
(b)1 and 3 only
(c)2 only
(d)1, 2 and 3
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Not attemptedCorrect Answer: (b) 1 and 3 only
RBI guidelines allow resident-owned telecom firms and supermarket chains to promote Payment Banks (statement 1). These banks may issue ATM/debit cards but are barred from credit card issuance, and they are prohibited from lending; thus statement 2 is wrong while statement 3 is right. ([dalvoy.com](https://www.dalvoy.com/upsc/previous-years/2016/upsc-2016-payment-banks-eligibility-credit-debit-cards-lending-restrictions?utm_source=openai))
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Frequently Asked Questions
What is the correct answer to this UPSC 2016 Indian Economy question?▼
The correct answer is option (b): 1 and 3 only. Watch the detailed video explanation in our Sherlocking Prelims course on UnlockIAS.
Which year was this Digital Payments & Financial Inclusion question asked in UPSC Prelims?▼
This question was asked in UPSC CSE Prelims 2016, GS Paper 1, as Question 4. It falls under Indian Economy > Digital Payments & Financial Inclusion.
What is the difficulty level of this UPSC question?▼
This question is rated "moderate". It requires sound conceptual understanding of the topic.
How many UPSC Prelims questions have been asked from Digital Payments & Financial Inclusion?▼
UPSC has asked 20 questions from Digital Payments & Financial Inclusion (under Indian Economy) across multiple years. Visit the topic page to see the full list and year-wise trends.