Digital Payments — Set 2

Correct Answer: B. Rs. 2,00,000

Real Time Gross Settlement (RTGS) is primarily meant for high-value transactions, hence the minimum limit is Rs. 2 lakh. Transactions are processed individually and continuously throughout the business day. There is no maximum limit for RTGS transactions according to general banking guidelines.

Correct Answer: B. RuPay

RuPay is a domestic card payment network launched by NPCI in 2012. It was created to fulfill the RBI's vision of having a domestic, open and multilateral system of payments. RuPay is now accepted internationally through various partnerships with global card networks.

Correct Answer: A. Bharat Bill Payment System

Bharat Bill Payment System (BBPS) is an interoperable platform for recurring bill payments. It offers a single brand for billers and customers across India for utilities like electricity and water. It provides multiple payment modes and instant confirmation of payment.

Correct Answer: B. Rs. 10,000

Small Prepaid Payment Instruments (PPIs) are typically limited to a monthly load of Rs. 10,000. These are often used for minor digital transactions and require minimal KYC details. Full-KYC wallets have much higher limits and allow bank transfers.

Correct Answer: D. USSD

The *99# service is based on USSD technology and provides basic banking services on any mobile phone. It works across almost all GSM service providers and mobile handsets in India. The service is available in multiple Indian languages to increase accessibility.

Correct Answer: B. Digital scanning and clearing of cheques

CTS is a project of RBI to facilitate faster clearing of cheques without physical movement of the paper document. Instead, an electronic image of the cheque is transmitted to the drawee branch. This reduces the time and cost associated with the traditional cheque clearing cycle.

Correct Answer: D. Variable Loop PPI

PPIs are classified as Closed, Semi-Closed, and Open Loop depending on their usage restrictions. Closed loop PPIs are issued by an entity for its own services only. Variable Loop PPI is not a standard category recognized by the Reserve Bank of India.

Correct Answer: D. Merchant Discount Rate

Merchant Discount Rate (MDR) is the fee that a merchant pays to their bank for accepting digital payments. This fee is distributed among the bank that issued the card, the bank that installed the PoS machine, and the network provider. In some cases, the government subsidizes MDR to encourage digital adoption.

Correct Answer: C. DBT

Direct Benefit Transfer (DBT) is a mechanism used by the Government of India to transfer subsidies directly to the bank accounts of beneficiaries. It aims to eliminate leakages, middle-men, and delays in the distribution system. This process heavily relies on Aadhaar as a primary identifier.

Correct Answer: A. Bharat Interface for Money

BHIM stands for Bharat Interface for Money, and it was named after B.R. Ambedkar. It is a digital payment app developed by NPCI and launched in December 2016. The app allows users to make simple and quick transactions using UPI.