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Discussion

Which of the following is not true about Payments Bank?

  • A.Payments bank can issue ATM/debit cards but not credit cards
  • B.Initial capital required for a Payments Bank is Rs 100 crore
  • C.Payments Bank must maintain Cash Reserve Ration (CRR) as decided by RBI.
  • D.Payments Bank can give a loan of up to only Rs 1 lakh.

Answer: D

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.
Payments Bank are not allowed to give loans of any amount.

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