{"id":35036,"date":"2024-03-20T08:54:06","date_gmt":"2024-03-20T08:54:06","guid":{"rendered":"https:\/\/edukemy.com\/blog\/?p=35036"},"modified":"2024-03-20T08:54:07","modified_gmt":"2024-03-20T08:54:07","slug":"upsc-prelims-2016-question-4","status":"publish","type":"post","link":"https:\/\/edukemy.com\/blog\/upsc-prelims-2016-question-4\/","title":{"rendered":"UPSC Prelims 2016 &#8211; Question 4"},"content":{"rendered":"\n<figure class=\"wp-block-image size-full is-resized\"><a href=\"https:\/\/edukemy.com\/upsc\/upsc-prelims-test-series?utm_source=Blog&amp;utm_medium=Blog&amp;utm_campaign=Blog-%20PTS\" target=\"_blank\" rel=\"noreferrer noopener\"><img fetchpriority=\"high\" decoding=\"async\" src=\"https:\/\/edukemy.com\/blog\/wp-content\/uploads\/2024\/02\/Prelims-Test-Series-eng-and-hindi-1280\u00d7330.svg\" alt=\"UPSC Prelims Mock Test - ECONOMY 2\" class=\"wp-image-24924\" width=\"779\" height=\"199\"\/><\/a><\/figure>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_73 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<label for=\"ez-toc-cssicon-toggle-item-69d153efaf6b7\" class=\"ez-toc-cssicon-toggle-label\"><p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-cssicon\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-69d153efaf6b7\"  \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/edukemy.com\/blog\/upsc-prelims-2016-question-4\/#Q4_The_establishment_of_%E2%80%98Payment_Banks_is_being_allowed_in_India_to_promote_financial_inclusion_Which_of_the_following_statements_isare_correct_in_this_context\" title=\"Q4. The establishment of \u2018Payment Banks\u2019 is being allowed in India to promote financial inclusion. Which of the following statements is\/are correct in this context?\">Q4. The establishment of \u2018Payment Banks\u2019 is being allowed in India to promote financial inclusion. Which of the following statements is\/are correct in this context?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/edukemy.com\/blog\/upsc-prelims-2016-question-4\/#The_correct_answer_is%E2%80%AF1_and_3_only\" title=\"The correct answer is\u202f1 and 3 only.&nbsp;\">The correct answer is\u202f1 and 3 only.&nbsp;<\/a><\/li><\/ul><\/nav><\/div>\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Q4_The_establishment_of_%E2%80%98Payment_Banks_is_being_allowed_in_India_to_promote_financial_inclusion_Which_of_the_following_statements_isare_correct_in_this_context\"><\/span>Q4. The establishment of \u2018Payment Banks\u2019 is being allowed in India to promote financial inclusion. Which of the following statements is\/are correct in this context?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<ol class=\"wp-block-list\"><li>Mobile telephone companies and supermarket chains that are owned and controlled by residents are eligible to be promoters of Payment Banks<\/li><li>Payment Banks can issue both credit cards and debit cards.<\/li><li>Payment Banks cannot undertake lending activities.<\/li><\/ol>\n\n\n\n<p>Select the correct answer using the code given below.<br>a) 1 and 2 only<br>b) 1 and 3 only<br>c) 2 only<br>d) 1, 2 and 3<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"The_correct_answer_is%E2%80%AF1_and_3_only\"><\/span>The correct answer is\u202f<strong>1 and 3 only<\/strong>.&nbsp;<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<ul class=\"wp-block-list\"><li><strong>Payment Banks&nbsp;<\/strong>&nbsp;<\/li><\/ul>\n\n\n\n<ul class=\"wp-block-list\"><li>It is like any other bank, but operating on a smaller or restricted scale.&nbsp;<\/li><li>Credit risk is not involved with the Payments Bank.&nbsp;&nbsp;<\/li><li><strong>It can carry out most banking operations but cannot advance loans or issue credit cards. <\/strong><strong>Hence statement 2 is not correct and Statement 3 is correct.<\/strong>&nbsp;<\/li><li>It can accept demand deposits only i.e. savings and current accounts, not time deposits.&nbsp;<\/li><li>The Payment Banks cannot set up subsidiaries to undertake non-banking financial services activities.&nbsp;<\/li><li>A committee headed by Dr. Nachiket Mor recommended setting up of &#8216;Payments Bank&#8217; to cater to the lower income groups and small businesses.&nbsp;<\/li><li>It can Accept demand deposits.&nbsp;<\/li><li>It can Issue\u202fATM\/Debit cards, but can\u2019t issue credit cards.\u202f&nbsp;<\/li><li>Eligible to be promoters of Payment Banks:&nbsp;<\/li><\/ul>\n\n\n\n<ul class=\"wp-block-list\"><li>Existing non-bank Prepaid Payments Instrument (PPI) issuers,\u00a0<\/li><li>NBFCs Corporate Business Correspondents,\u00a0<\/li><li><strong>Mobile phone companies, supermarket chains<\/strong>, public sector entities,\u202freal sector cooperatives, etc.\u202f<strong>Hence statement 1 is correct.<\/strong>\u00a0<\/li><\/ul>\n\n\n\n<figure class=\"wp-block-image size-full\"><a href=\"https:\/\/edukemy.com\/free-resources-for-upsc?utm_source=Blog&amp;utm_medium=Banner&amp;utm_campaign=Resources\" target=\"_blank\" rel=\"noreferrer noopener\"><img decoding=\"async\" width=\"1280\" height=\"300\" data-src=\"https:\/\/edukemy.com\/blog\/wp-content\/uploads\/2024\/06\/18.png\" alt=\"\" class=\"wp-image-42398 lazyload\" data-srcset=\"https:\/\/edukemy.com\/blog\/wp-content\/uploads\/2024\/06\/18.png 1280w, https:\/\/edukemy.com\/blog\/wp-content\/uploads\/2024\/06\/18-1170x274.png 1170w, https:\/\/edukemy.com\/blog\/wp-content\/uploads\/2024\/06\/18-585x137.png 585w\" data-sizes=\"(max-width: 1280px) 100vw, 1280px\" src=\"data:image\/gif;base64,R0lGODlhAQABAAAAACH5BAEKAAEALAAAAAABAAEAAAICTAEAOw==\" style=\"--smush-placeholder-width: 1280px; --smush-placeholder-aspect-ratio: 1280\/300;\" \/><\/a><\/figure>\n\n\n\n<p>For UPSC Prelims Resources,&nbsp;<a href=\"https:\/\/edukemy.com\/upsc-cse-prelims-resource-centre\" target=\"_blank\" rel=\"noreferrer noopener\">Click here<\/a><\/p>\n\n\n\n<p>For Daily Updates and Study Material:<\/p>\n\n\n\n<p>Join our Telegram Channel \u2013&nbsp;<a href=\"https:\/\/t.me\/WithEdukemy4IAS\" target=\"_blank\" rel=\"noreferrer noopener\">Edukemy for IAS<\/a><\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>1. Learn through Videos \u2013&nbsp;<a href=\"https:\/\/bit.ly\/3vOD8sU\" target=\"_blank\" rel=\"noreferrer noopener\">here<\/a><\/li><li>2. Be Exam Ready by Practicing Daily MCQs \u2013&nbsp;<a href=\"https:\/\/bit.ly\/3Q9z2nF\" target=\"_blank\" rel=\"noreferrer noopener\">here<\/a><\/li><li>3. Daily Newsletter \u2013 Get all your Current Affairs Covered \u2013&nbsp;<a href=\"https:\/\/bit.ly\/3bE2y5J\" target=\"_blank\" rel=\"noreferrer noopener\">here<\/a><\/li><li>4. Mains Answer Writing Practice \u2013&nbsp;<a href=\"https:\/\/bit.ly\/3mZuVxl\" target=\"_blank\" rel=\"noreferrer noopener\">here<\/a><\/li><\/ul>\n\n\n\n<p>Visit our YouTube Channel \u2013<a href=\"https:\/\/www.youtube.com\/@EduKemyforIAS\">&nbsp;here<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Q4. The establishment of \u2018Payment Banks\u2019 is being allowed in India to promote financial inclusion. Which of the following statements is\/are correct <\/p>\n","protected":false},"author":17,"featured_media":35039,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_eb_attr":"","om_disable_all_campaigns":false,"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"_uf_show_specific_survey":0,"_uf_disable_surveys":false,"_lmt_disableupdate":"","_lmt_disable":"","footnotes":""},"categories":[1644],"tags":[232,515,231],"class_list":["post-35036","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-upsc-prelims","tag-upsc","tag-upsc-cse","tag-upsc-prelims"],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/edukemy.com\/blog\/wp-json\/wp\/v2\/posts\/35036","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/edukemy.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/edukemy.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/edukemy.com\/blog\/wp-json\/wp\/v2\/users\/17"}],"replies":[{"embeddable":true,"href":"https:\/\/edukemy.com\/blog\/wp-json\/wp\/v2\/comments?post=35036"}],"version-history":[{"count":1,"href":"https:\/\/edukemy.com\/blog\/wp-json\/wp\/v2\/posts\/35036\/revisions"}],"predecessor-version":[{"id":35040,"href":"https:\/\/edukemy.com\/blog\/wp-json\/wp\/v2\/posts\/35036\/revisions\/35040"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/edukemy.com\/blog\/wp-json\/wp\/v2\/media\/35039"}],"wp:attachment":[{"href":"https:\/\/edukemy.com\/blog\/wp-json\/wp\/v2\/media?parent=35036"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/edukemy.com\/blog\/wp-json\/wp\/v2\/categories?post=35036"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/edukemy.com\/blog\/wp-json\/wp\/v2\/tags?post=35036"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}