Digital Payments — Set 3
Banking · डिजिटल भुगतान · Questions 21–30 of 90
Which card allows you to spend only up to the amount available in your linked bank account?
Correct Answer: D. Debit Card
A debit card is linked directly to your savings or current account, and funds are deducted instantly upon transaction. This prevents the user from going into debt by spending more than they have. In contrast, credit cards allow users to borrow funds up to a pre-approved limit.
What does 'NACH' stand for in the context of high-volume recurring payments?
Correct Answer: D. National Automated Clearing House
National Automated Clearing House (NACH) is a centralized system for bulk inter-bank electronic transactions. It is used for recurring payments like salaries, pensions, dividends, and utility bills. NACH was implemented by NPCI to harmonize multiple existing ECS systems.
Which security feature is mandatory for all online card transactions in India to provide '2-Factor Authentication'?
Correct Answer: B. OTP (One Time Password)
The correct answer is 'OTP (One Time Password)'. RBI has made it mandatory to use a second factor of authentication, usually an OTP, for online card-not-present transactions. This ensures that even if card details are stolen, the transaction cannot be completed without the code sent to the registered mobile. It significantly reduces the risk of online financial fraud.
What is the full form of MMID used in IMPS transactions?
Correct Answer: B. Mobile Money Identifier
Mobile Money Identifier (MMID) is a seven-digit unique number issued by a bank to a customer for IMPS services. It allows users to transfer funds using only a mobile number and the MMID of the receiver. This was the primary method of transfer before the introduction of UPI.
Which of the following is a mobile wallet owned by a private tech company rather than a bank?
Correct Answer: A. Paytm
Paytm is a prominent third-party mobile wallet and payment app owned by One97 Communications. YONO, Pockets, and iMobile are digital banking apps developed by SBI, ICICI, and ICICI banks respectively. Private wallets often offer a range of services beyond banking, such as e-commerce.
What technology is used by 'Tap and Pay' contactless cards?
Correct Answer: A. NFC (Near Field Communication)
Contactless cards use Near Field Communication (NFC) technology to transmit payment data to a terminal without physical contact. The user simply taps the card on the machine to complete the transaction. In India, small transactions via NFC often do not require a PIN.
What is the maximum limit for a contactless transaction without a PIN in India currently?
Correct Answer: B. Rs. 5,000
The RBI increased the limit for contactless card payments without a PIN to Rs. 5,000 in January 2021. For amounts exceeding this limit, the user must provide their PIN for security verification. This increase was aimed at promoting safer, touch-free transactions during the pandemic.
Which system is primarily used for the bulk clearing of Aadhaar-based payments?
Correct Answer: D. ABPS
Aadhaar Bridge Payment System (ABPS) is used to clear bulk payments for government schemes like MGNREGA. It uses the Aadhaar number as a central key for routing transactions to the correct bank account. This ensures that the benefit reaches the intended person even if they change their bank account.
What is the full form of CVV found on the back of payment cards?
Correct Answer: A. Card Verification Value
Card Verification Value (CVV) is a three or four-digit security code used for online or phone transactions. It serves as an additional layer of security to verify that the person making the purchase has the actual card. Users are advised never to share their CVV with anyone.
Which mobile app was launched by the Indian government for unified mobile governance, including payments?
Correct Answer: A. UMANG
UMANG (Unified Mobile Application for New-age Governance) provides access to various central and state government services. It integrates several payment options for utility bills and other government dues. The app is part of the Digital India initiative to provide services on mobile.