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Which type of bank provides only basic banking services and is not allowed to give loans?

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Question

Which type of bank provides only basic banking services and is not allowed to give loans?

Options

  • Commercial Bank

  • Payments Bank

  • Small Finance Bank

  • Cooperative Bank

MCQ
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Solution

Payments Bank

Explanation: 

Payments Banks can accept deposits and offer basic services like payments and remittances, but they cannot extend credit.

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