Payments Banks MCQ for RBI Grade B and other exams

Dear aspirants,
We are presenting you the Payments Banks MCQ for RBI Grade B Finance Section of the exam.These questions will cover the payment banks topic which is very important from exam point of view. Also do read the answers provided at the end of quiz.

Q1. Which among the following activities are not permitted to payments banks?

1. Remittance services
2. Issuing ATM cards
3. Issuing credit cards
4. Accepting demand deposits

Q2. What is the maximum amount of loan can be extended by payments banks?

1. 25000
2. 50000
3. 100000
4. No lending power

Q3. What is the maximum amount of balance can be maintained an individual in payments bank?

1. 150000
2. 100000
3. 50000
4. 25000

Q4. Which committee mooted the idea of payments banks?

1. Bimal Jalan Committee
2. Nachiket Mor Committee
3. P J Nayak Committee
4. YV Reddy Committee

Q5. What is the minimum capital required to set up payments bank?

1. Rs 100 crore
2. Rs 75 crore
3. Rs 50 crore
4. Rs 25 crore

Q6. How much percentage of its funds is required to be invested by payments banks in government securities or T-bills with maturity up to 1 year?

1. 25%
2. 40%
3. 50%
4. 75%

Q7. For first five years how much paid-up equity capital needs to be maintained by promoters in payments bank?

1. 20%
2. 30%
3. 40%
4. 60%

Q8. How many applicants had been granted in-principle approval by RBI to start payments banks?

1. 11
2. 10
3. 9
4. 6

Q9. How many payments banks have actually started operations since RBI has granted the in-principle approval?

1. 11
2. 10
3. 9
4. 6

Q10. How much percentage of its funds can be held by payments banks in current and time deposit with Scheduled Commercial Bank?

1. 25%
2. 40%
3. 50%
4. 75%

Answers

1. 3
   The payments banks cannot offer credit cards. The permitted activities are accepting demand deposits, issuing ATM cards, providing remittance services and issue pre-paid instruments.
2. 4
   Payments banks cannot lend. They cannot provide credit facilities.
3. 2
   Maximum deposit that can be maintained in payments bank is Rs 100000 per individual/business
4. 2
   The Nachiket Mor committee mooted the idea of payments banks in 2013
5. 1
   The minimum capital required to start payments bank is Rs 100 crore.
6. 4
   The payments banks need to invest 75% of its funds in government securities or T-bills with maturity upto 1 year
7. 3
   The promoter’s minimum initial contribution to the paid-up equity capital of payments bank shall at least be 40 per cent for the first five years from the commencement of its business
8. 1
   The Reserve Bank of India decided to grant “in-principle” approval to the 11 applicants to set up payments banks in 2015.
9. 4
   Six payments that have started operations are Aditya Birla Payments Bank, Airtel Payments Bank, India Post Payments Bank, Fino Payments Bank, Jio Payments Bank, Paytm Payments Bank
10. 1
    The payments bank can hold maximum 25% in current and time/fixed deposits with other scheduled commercial banks

You may also like to read following MCQs for RBI Grade B exam: 

• Measures of Money Supply Quiz
• Coins related questions
• DSIB Quiz, Priority Sector Quiz
• GST questions

Click to go to RBI Grade B Preparation Page  | Click to read more such quizzes

Tags: Payments Banks MCQ for RBI Grade B, Payments Banks MCQ for RBI Grade B, Payments Banks MCQ, Payments Banks MCQ for RBI Grade B Finance section