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RAS question

What is a Payments Bank's maximum deposit limit per customer?

Correct answer: (D) ₹2 lakh.

A Payments Bank can hold a maximum end-of-day balance of Rs 2 lakh per individual customer.

  1. (A)

    ₹1 lakh

  2. (B)

    ₹5 lakh

  3. (C)

    No limit

  4. (D)

    ₹2 lakh

Explanation

Payments Banks are allowed to accept customer deposits, but only up to a capped balance. The RBI press release says the earlier limit under the Payments Bank licensing guidelines was Rs 1 lakh per individual customer, and that the limit was enhanced from Rs 1 lakh to Rs 2 lakh per customer at the end of the day. This is why Rs 2 lakh is the right answer, not because Payments Banks have the same freedom as ordinary commercial banks. The regulatory boundary is also clear: Payments Banks cannot lend and cannot issue credit cards, though they can provide ATM cards, debit cards, online banking and mobile banking services.

Why the other options are wrong

  • (A) Rs 1 lakh was the earlier ceiling; the RBI press release records that this limit was enhanced to Rs 2 lakh per individual customer.
  • (B) Rs 5 lakh is above the RBI-stated maximum balance of Rs 2 lakh per individual customer for Payments Banks.
  • (C) Payments Banks do have a capped customer balance; the RBI notice specifically fixes the maximum at Rs 2 lakh per individual customer.

Concept

This tests financial inclusion and banking regulation, especially the special design of Payments Banks. It recurs in RAS because such questions check whether aspirants know both the service role of Payments Banks and the regulatory limits placed on them.

Source

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