Which of these entities surrendered their Payments Bank license?
Answer: D
Cholamandalam Distribution Services, Sun Pharmaceuticals and Tech Mahindra have surrendered their licenses. Now there are only 7 Payments banks in operation.
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Which of the following statements is/are correct about Payment bank?
1. Payment bank will have to keep CRR (Cash reserve ratio) just like other Scheduled commercial banks.
2. The highest balance a bank can hold per customer Rs 50,000.
Answer: A
The highest balance a bank can hold per customer is Rs 1 lakh, against the Mor panel’s recommendation of Rs 50,000.
- While payment banks won’t have to have a quarter of their branches in un-banked rural areas (as applicable for existing banks), they should have at least 25 per cent of their access points in such areas.
- The minimum paid-up capital required for both categories would be Rs 100 crore, of which the promoter would have to contribute at least 40 percent initially, with a five-year lock-in period.
- They would also have to maintain a capital adequacy ratio of 15 percent, though under Basel-I norms.
- If promoter shareholding exceeds 40 percent, it has to be cut to this level within three years of operations, 30 percent within 10 years and 26 percent within 13 years.
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In 2015, RBI gave “ in-principle “ licence to eleven entities to launch payment banks. The licence was valid for __ months ?
Answer: C
18 Months. The licence was valid for 18 months within which entities must fulfil the requirements and they were not allowed to engage in banking activities within the period.
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How many branches of Payment banks must be in the unbanked rural area?
Answer: A
The Reserve Bank of India mandates that atleast 25% branches of Payment banks must be in the unbanked rural area.
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How much percentage of its funds is required to be invested by payments banks in government securities or T-bills with maturity up to 1 year?
Answer: D
The payments banks need to invest 75% of its funds in government securities or T-bills with maturity upto 1 year
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What is the deposit limit on saving accounts in the Payment banks?
Answer: A
Payments banks can accept demand deposits up to Rs. 1 lakh per account from individuals and small businesses.
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Minimum Capital Requirement for Payment Bank is ___ ?
Answer: A
No answer description available for this question
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The promoter’s minimum initial contribution to the paid-up equity capital of payments bank shall at least be ____ per cent for the first five years from the commencement of its business.
Answer: C
The promoter’s minimum initial contribution to the paid-up equity capital of such payment bank shall at least be 40 per cent for the first five years from the commencement of its business.
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Consider the following statements
1. A payments bank will not be allowed to lend and will invest 75 percent of funds in government securities.
2. Its main focus is to offer remittance services and simple financial products.
3. The minimum capital requirement is set at Rs 100 crore.
4. It will be allowed to accept savings deposits up to Rs 1 lakh a customer.
Which of the above statements is/are correct?
Answer: D
No answer description available for this question
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Under what section of the Banking Regulation Act, 1949 the payments banks are licensed?
Answer: A
Payment banks are licensed as payments banks under Section 22 of the Banking Regulation Act, 1949, and will be registered as public limited company under the Companies Act, 2013.
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