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    Question

    Identify the INCORRECT statement regarding Payment Banks:

    A They accept deposit up to a limit of Rs 1 lakh only Correct Answer Incorrect Answer
    B They provide loan only to MSMEs Correct Answer Incorrect Answer
    C It was recommended by Nachiket Mor Committee Correct Answer Incorrect Answer
    D First payment bank was Airtel Payment Bank Correct Answer Incorrect Answer
    E They provide remittance facility Correct Answer Incorrect Answer

    Solution

    The concept of Payment Bank was first mooted by Nachiket Mor Committee in 2014 for financial inclusion. These banks accept deposit only up to Rs 1 lakh. They also provide remittance services, mobile payment, ATM/debit card services etc. But they don't provide any kind of credit. Till now 10 payment banks have been granted license by a selection committee constituted under Nachiket Mor. Airtel Payment Bank was the first to start its operation. Later Paytm, India Post and fino have also started operation.

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