ATM Types — Set 3
Banking · ATM के प्रकार · Questions 21–30 of 50
In a Brown Label ATM model, which of the following is usually the responsibility of the bank?
Correct Answer: C. Cash management and Brand name
Under the Brown Label model, the bank provides the cash and its own brand logo, while a third party manages the machine and location. This is a cost-effective outsourcing strategy for banks. The bank remains the face of the service to the customer.
Which ATM type is specifically aimed at increasing banking penetration in rural areas with low connectivity?
Correct Answer: A. White Label ATM
White Label ATMs are intended to expand banking services in underbanked areas where traditional banks find it unprofitable. The RBI mandates WLA operators to deploy a certain percentage of machines in Tier III to Tier VI centers. This helps in achieving the goal of universal financial inclusion.
What happens if a bank fails to credit back the amount for a failed ATM transaction within T+5 days?
Correct Answer: D. Bank pays Rs 100 per day penalty to the customer
According to RBI rules, the bank must resolve failed transaction complaints within 5 working days (T+5). If delayed beyond this period, the bank is liable to pay a compensation of Rs 100 per day to the customer. This ensures that banks remain efficient in handling electronic banking errors.
Which of these is a non-financial transaction at an ATM?
Correct Answer: C. Balance Inquiry
Balance inquiry is a non-financial transaction because it does not involve the movement or withdrawal of actual money. Other examples include changing the PIN or requesting a mini-statement. Most banks count both financial and non-financial attempts toward the monthly free limit.
The concept of 'Cardless Cash Withdrawal' at ATMs primarily uses which technology?
Correct Answer: B. QR Code or UPI
Cardless cash withdrawal allows users to withdraw money using their banking app to scan a QR code on the ATM screen via UPI. This method is highly secure as it eliminates the risk of card skimming or cloning. It reflects the integration of mobile apps with traditional hardware.
What is the full form of the term ATM?
Correct Answer: B. Automated Teller Machine
ATM stands for Automated Teller Machine. It is an electronic telecommunications device that enables customers to perform financial transactions without a human clerk. In different countries, they are also known as cashpoints or ABMs.
Which type of ATM is owned by the bank, but the location is leased and maintained by a vendor?
Correct Answer: B. Brown Label
In the Brown Label model, the bank usually leases the hardware and location from a service provider. The bank provides the cash and connectivity. This hybrid model allows for rapid expansion with lower operational overhead.
Which specialized ATM is meant solely for banking transactions in the agriculture sector?
Correct Answer: C. Green Label
Green Label ATMs are dedicated to agricultural and rural banking needs. They support various government schemes and credit facilities for farmers. They are essential for modernizing rural financial systems.
ATMs that allow customers to deposit cash as well as withdraw it are known as?
Correct Answer: A. Cash Recyclers
Cash Recyclers are advanced ATMs that accept cash deposits and then use that same cash for future withdrawals. They help banks reduce the frequency of manual cash loading. This improves machine uptime and efficiency.
What is the primary role of NPCI in the context of ATMs?
Correct Answer: B. Managing the National Financial Switch (NFS)
NPCI manages the National Financial Switch, which connects over 2 lakh ATMs across India. It acts as the central hub for clearing and settlement of inter-bank ATM transactions. This centralized network is the backbone of retail payments in India.