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    Question

    Which of the following banks will not carry any credit

    risk?
    A Universal Banks Correct Answer Incorrect Answer
    B Foreign Banks Correct Answer Incorrect Answer
    C Small Finance Banks Correct Answer Incorrect Answer
    D Payment Banks Correct Answer Incorrect Answer
    E Regional rural banks Correct Answer Incorrect Answer

    Solution

    Payment banks do not engage in lending activity.   As such, they are not exposed to credit risk or default risk.

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