Payment And SFI Flashcards
(29 cards)
Payment Banks operate on what scale compared to other banks?
On a smaller scale.
Do Payment Banks involve credit risk?
No, they do not involve any credit risk.
What is the maximum deposit limit for Payment Banks?
Demand deposits up to ₹1 lakh.
What are the main functions of Payment Banks?
Payments, transfers, ATM services, debit cards, net banking.
Can Payment Banks issue credit cards or subsidiaries?
No, they cannot issue credit cards or establish subsidiaries.
Can Payment Banks engage in lending?
No, lending activities are not permitted.
Who recommended the establishment of Payment Banks?
Dr. Nachiket Mor Committee.
How many Payment Banks currently operate in India?
Six.
Name some promoters of Payment Banks.
- Aditya Birla Group
- Reliance Industries
- Paytm
- Tech Mahindra
What is the minimum paid-up capital required for Payment Banks?
₹100 crore.
What percentage of demand deposits must Payment Banks maintain in CRR/SLR?
Minimum 25%.
What types of promoters are eligible for Payment Banks?
- Non-bank PPIs
- NBFCs
- Individuals
- Corporations
- Mobile phone companies
- Supermarket chains
- Public sector entities
What is the main objective of Payment Banks?
To provide financial services to low-income households and migrant laborers.
Which laws govern Payment Banks?
- Banking Regulation Act 1949
- RBI Act 1934
- Foreign Exchange Management Act
- Payment and Settlement Systems Act 2007
What are limitations of Payment Banks?
- No lending business
- Low interest earnings
- Competition from UPI
- Lack of awareness and infrastructure
What is the focus of Specialized Financial Institutions (SFIs)?
Economic and social development, especially small and cottage enterprises.
Name some important SFIs.
- EXIM Bank
- SIDBI
- NABARD
- NHB
What is the role of EXIM Bank?
Provide banking for export-import, manage large transactions, risk info, implement policies.
Where is EXIM Bank headquartered?
Mumbai, Maharashtra.
What is NABARD’s main purpose?
Rural and agricultural development, credit planning, refinance, supervision of RRBs.
When was NABARD formed?
12 July 1982.
Where is NABARD headquartered?
Mumbai.
What does SIDBI do?
Supports small industries with loans, venture capital, modernizing technology, and marketing help.
When was SIDBI formed?
2 April 1990.
