Which of following is an incorrect statement about payment banks?

Correct option is D

The correct answer is (d) They can issue credit cards.
· Payment Banks in India cannot issue credit cards. They are permitted to provide limited banking services, such as accepting demand deposits (savings and current accounts), issuing debit cards, and offering internet banking services, but they are restricted from issuing credit cards and providing loans.
Information Booster:
· They can accept demand deposits: Correct. Payment banks can accept deposits up to ₹2 lakh per customer.
· They can issue debit cards: Correct. Payment banks can issue debit cards but not credit cards.
· They cannot issue loans: Correct. Payment banks are not allowed to lend money or provide credit.
Additional Information:
· Payment Banks:
· Introduced by the Reserve Bank of India (RBI) to promote financial inclusion by offering basic banking services to unbanked and underbanked segments.
· They primarily cater to low-income households, small businesses, and migrant laborers.