According to the regulatory guidelines issued by the Reserve Bank of India, which of the following activities is strictly NOT permitted for Payment Banks in India?

💡 Solution & Explanation

Payment Banks in India are explicitly barred from issuing credit cards or undertaking any lending operations, although they are permitted to accept demand deposits up to statutory limits and issue debit cards. These specialized banks aim to promote financial inclusion by providing basic banking services to unserved segments. They maintain their reserve requirements primarily in secure government securities.