Economics • Banking & FinanceEasy
What is the primary objective of establishing 'Payment Banks' in India as per RBI guidelines?
A. To provide large corporate loans and international trade financing
B. To enhance financial inclusion by providing small savings accounts and payments/remittance services to migrant workers and low-income households✓ Correct Answer
C. To manage foreign exchange reserves of the central government
D. To act exclusively as a clearing house for stock market transactions
💡 Solution & Explanation
Payment banks were established in India following recommendations of the Nachiket Mor Committee to enhance financial inclusion by providing small savings accounts and remittance services to low-income households and migrant workers. Unlike universal commercial banks, payment banks are restricted from lending or issuing credit cards.
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