Exercises · Q5
Q.Distinguish between a Payments Bank and a Small Finance Bank.
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Start your 14-day free trial to unlock the full solution →| Basis | Payments Bank | Small Finance Bank |
|---|---|---|
| Can accept deposits? | Yes, up to a prescribed per-customer ceiling | Yes, without such a ceiling |
| Can extend loans? | No — cannot lend money or issue credit cards | Yes — lending to underserved segments is its core purpose |
| Main focus | Payments, remittances and financial inclusion, often via mobile/digital channels | Credit to small businesses, small/marginal farmers, and micro/small enterprises |
| Example | India Post Payments Bank | AU Small Finance Bank |
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