In the context of Indian financial inclusion and digital banking, which Payments Bank became the first bank to offer cash backs on deposits as part of its innovative product strategy?

Introduction / Context:
This question tests knowledge of innovations in the Indian banking sector, specifically within the new category of Payments Banks. Payments Banks were created by the Reserve Bank of India to push financial inclusion, digital transactions and small savings among people who may not use traditional banks. To attract customers, some of these banks introduced creative features such as cash backs on deposits. Knowing which Payments Bank did what is part of current affairs and business awareness that often appears in banking and general knowledge examinations.

Given Data / Assumptions:
- The question is about a Payments Bank, a specialised category of bank in India.
- It asks which Payments Bank became the first to offer cash backs on deposits.
- The options are Postal Payments Bank, Airtel Payments Bank, Aditya Birla Payments Bank and Paytm Payments Bank.
- We assume that the question refers to early initiatives reported widely when Payments Banks were launched in India.

Concept / Approach:
Airtel Payments Bank was among the first Payments Banks to start operations in India. It used its large telecom customer base and extensive retailer network to promote banking services. As part of its strategy, Airtel Payments Bank introduced the idea of offering cash backs on deposits to encourage customers to open accounts and deposit money. This was presented as a unique benefit in news reports and advertisements. Other Payments Banks like Paytm Payments Bank and India Post Payments Bank also introduced attractive features, but the specific distinction of being the first to offer cash backs on deposits is associated with Airtel Payments Bank.

Step-by-Step Solution:
Step 1: Note that the question focuses on a "first" among Payments Banks with respect to cash backs on deposits. Step 2: Recall that Airtel Payments Bank started operations early and aggressively promoted special deposit schemes. Step 3: Compare the known innovations of Paytm Payments Bank, Postal Payments Bank and Aditya Birla Payments Bank, none of which were highlighted primarily for this specific first. Step 4: Based on this recollection, select Airtel Payments Bank as the correct answer.

Verification / Alternative check:
To verify, think back to the period when Payments Banks launched. News articles often mentioned Airtel Payments Bank's offers that rewarded customers with cash back on deposits up to a certain limit, aiming to build initial balances and regular usage. By contrast, India Post Payments Bank emphasised using the postal network for last mile reach, and Paytm Payments Bank focused on wallet integration and digital convenience. Aditya Birla Payments Bank was present but did not claim this particular first in popular reports. Therefore, cross checking general news coverage confirms that Airtel Payments Bank introduced cash backs on deposits as a pioneering feature.

Why Other Options Are Wrong:
Postal Payments Bank: Known for leveraging the postal department's physical network and doorstep banking, but not specifically recognised as the first to offer cash backs on deposits.
Aditya Birla Payments Bank: Another Payments Bank, but it did not become famous for this particular innovation and had relatively less public visibility.
Paytm Payments Bank: Strong in digital payments and wallet integration, but the specific "first to offer cash backs on deposits" tag belongs to Airtel Payments Bank, not Paytm.

Common Pitfalls:
Students may confuse different digital banking brands, especially Paytm and Airtel, because both are well known in digital payments and telecom. Another common pitfall is to assume that the most visible digital wallet brand, Paytm, must be the answer to any question involving innovation in deposits. To avoid this, it is important to connect specific facts to each organisation, such as cashback on deposits for Airtel Payments Bank and wide post office reach for the India Post Payments Bank. Regular reading of banking current affairs helps solidify these associations.

Final Answer:
The Payments Bank that became the first to offer cash backs on deposits in India is Airtel Payments Bank.