PPSC PCS 2020 · Question 40 of 95

Which among the following is incorrect with respect to Payment Banks and Small Finance Banks in India?

Economy

APayments Banks can accept deposits but have to keep the customer balance below one lakh rupees, whereas there is no such restriction on the Small Finance Banks.
BPayments Banks cannot give loans or issue credit cards whereas Small Finance Banks can.
CMobile Companies and Supermarket Chains owned and controlled by residents are allowed to become eligible promoters for Payments Banks but this is not true for Small Finance Banks.
DPayments Banks cannot sell mutual funds, insurance and pension funds but Small Finance Banks can.Correct

Answer: D. Payments Banks cannot sell mutual funds, insurance and pension funds but Small Finance Banks can.

Explanation

Statement (d) is incorrect: payments banks can distribute mutual funds, insurance and pension products, though they cannot lend or issue credit cards.

Source: https://cdn.mindspritesolutions.com/examrace/SPSC/Punjab-PSC/Punjab-PSC-Past-Papers/Punjab-Civil-Service-2020-Official-Paper-1-Part-1.pdf

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