Discussion
What is the maximum amount of loan can be extended by payments banks?
Answer: D
Correct answer: No lending power
A payments bank cannot lend at all, to anyone, in any amount. Its deposits go into government securities and balances with scheduled commercial banks, and its income comes from that investment and from fees on payments and distribution. This is the defining restriction of the licence, and it is why a payments bank may issue a debit card but never a credit card.
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