Question : Which of the following institutions is responsible for regulating and supervising the functioning of payment banks in India?
Option 1: Reserve Bank of India (RBI)
Option 2: Securities and Exchange Board of India (SEBI)
Option 3: National Stock Exchange of India (NSE)
Option 4: None of the above
Correct Answer: Reserve Bank of India (RBI)
Solution : The correct answer is (a). Reserve Bank of India (RBI)
The Reserve Bank of India (RBI) is responsible for regulating and supervising the functioning of payment banks in India. Payment banks are a specialized category of banks introduced by the RBI to provide basic banking services, primarily focused on facilitating transactions and payments.
The RBI closely monitors payment banks to ensure compliance with these guidelines and supervises their operations to maintain the stability and integrity of the banking system. It oversees aspects such as customer service, risk management, liquidity management, reporting requirements, and overall compliance with regulatory norms.
