Business Correspondent Agents/Bank Mitras (BCAs/BMs) and Payment Banks (PB)

1) Which of the following statements is incorrect in context of Payment Banks?

a) They can raise deposits and pay interest on these balances.
b) They are not allowed to offer loans.
c) They can not issue debit and ATM cards.
d) They can provide forex cards to travelers.

2) What reasons have been cited by the corporate houses who dropped their plan to start a payment bank?

a) Long gestation period.
b) Limited revenue stream
c) Competition from mobile application based offerings by other commercial banks.
d) All of the above.

3) What is/are the facility/facilities the beneficiaries can get from the services of Bank Mitras?

i) Account opening
ii) Cash deposit and withdrawal
iii) Fund transfer (Remittances)
iv) insurance and pension related services.

a) i, ii, iii and iv
b) i, ii and iii
c) i and ii
d) i, iii and iv

4) Which of the following statements is incorrect with respect to India Post Payment Bank (IPPB)?

a) It is public limited company under the Department of Posts.
b) Government of India has 51% equity in it.
c) It can accept deposits of up to Rs 1 lakh.
d) It can sell insurance, pension and mutual fund products.

5) Which of the following services is/are been offered by the India Post?

a) Domestic remittance service.
b) Small savings deposits.
c) Providing ATM/debit cards.
d) All of the above.

6) What is/are the facility/facilities that payment banks provide to the beneficiaries?

i) Accepting demand deposits
ii) Providing cash withdrawal
iii) Remittance service
iv) Providing term loans

a) All of the above
b) i and ii only
c) i, ii and iii only
d) ii and iii only

7) Which of the following statements is correct regarding the difference between Non Banking Finance Companies (NBFCs) and Payment Banks(PB)?

a) NBFCs can not accept demand deposits but Payment Banks can accept such deposits.
b) NBFCs are in the business of lending money whereas Payment Banks can't offer loans.
c) Both a and b
d) Neither a nor b

Answers

1) c
2) d
3) a
4) b, 100% equity
5) d
6) c
7) c

Reference

1) The Hindu Link 1
2) The Hindu Link 2
3) Bank Mitras
4) India Post Payment Bank
5) PIB Link

Note : Payment Banks are the form of Niche banks, regulated by RBI, that play a significant role in promoting financial inclusion in the country.