Of the 11 companies that were given in-principle nod by the Reserve Bank of India (RBI) to set up payments banks in August, 2015, three have already dropped out. Which among the following company has dropped out?

a. Airtel Money

b. Tech Mahindra

c. PayTm

d. Vodafone mPesa

ANSWER: Tech Mahindra

Explanation:

Of the 11 companies that were given in-principle nod by the Reserve Bank of India (RBI) to set up payments banks in August, 2015, three companies - Tech Mahindra, Cholamandalam Finance and Dilip Shanghvi-IDFC Bank-Telenor JV have dropped out.

This leaves only eight applicants - India Post, Airtel Money, Reliance Industries, PayTm (Vijay Shekhar Sharma), Aditya Birla Nuvo, Vodafone MPesa, Fino PayTech and NSDL.

Payments Bank :

Payments banks are a new model of banks conceptualized by the Reserve Bank of India (RBI).

These banks can accept a restricted deposit which is currently limited to INR 1 lakh per customer and may be increased further.

These banks cannot issue loans and credit cards.

Payments banks can issue services like ATM cards, debit cards online banking and mobile banking.

Regulations -

The minimum capital requirement is Rs. 100 crores.

For the first five years, the stake of the promoter should be 40% minimum.

The voting rights will be regulated by the Banking Regulation Act, 1949. The voting right of any shareholder is capped at 10%, which can be raised to 26% by Reserve Bank of India.

Any acquisition of more than 5% will require approval of the RBI.