Digital Payments — Set 5
Banking · डिजिटल भुगतान · Questions 41–50 of 90
What is the full form of 'IFSC' in Indian banking?
Correct Answer: D. Indian Financial System Code
The Indian Financial System Code (IFSC) is an 11-character alphanumeric code that uniquely identifies a bank branch. It is essential for facilitating electronic fund transfers through NEFT and RTGS. The first four characters represent the bank name.
Which of these is used for scanning a physical barcode to make a UPI payment?
Correct Answer: B. Camera
Digital payment apps use the smartphone's camera to scan QR codes displayed at merchant outlets. The software decodes the information in the QR code to identify the recipient and the amount. This has become the most popular method for small retail payments in India.
What is the role of a 'Payment Aggregator'?
Correct Answer: D. Collecting and processing payments for merchants from various sources
Payment Aggregators (like Razorpay or Cashfree) help merchants accept various digital payment methods without setting up separate connections for each. They provide a unified interface to process cards, net banking, and UPI. These entities require authorization from the Reserve Bank of India to operate.
Which of the following is a 'Push' payment in digital banking?
Correct Answer: C. A customer sending money from their account to someone else
In a 'push' payment, the payer initiates the transaction and 'pushes' the money to the receiver. UPI and IMPS are primarily push-based systems where the user must authorize every outgoing transfer. 'Pull' payments are those where the receiver initiates the request for funds.
What is the full form of 'NPCI'?
Correct Answer: A. National Payments Corporation of India
National Payments Corporation of India (NPCI) is the primary organization for all retail payment systems in India. It was set up with the support of the RBI and IBA. NPCI is responsible for innovations like UPI and Bharat BillPay.
Which system replaced the old ECS (Electronic Clearing Service) in India?
Correct Answer: A. NACH
The National Automated Clearing House (NACH) was implemented to replace the localized Electronic Clearing Service (ECS). It provides a more robust and centralized framework for bulk recurring transactions. NACH has significantly improved the efficiency of dividend and subsidy payments.
What is the main advantage of using a FASTag for toll payments?
Correct Answer: C. No need to stop at toll plazas for cash payment
FASTag allows for automatic deduction of toll charges using RFID technology as the vehicle passes through the gate. This eliminates the need to wait in long queues for cash transactions. It is mandatory for all four-wheeled vehicles in India since February 2021.
What is the full form of 'PoS' in retail digital payments?
Correct Answer: B. Point of Sale
Point of Sale (PoS) refers to the time and place where a retail transaction is completed. In digital payments, it usually refers to the device where a customer swipes or taps their card. Modern PoS terminals also support QR code scanning and UPI payments.
Which of these is a 'pull' payment request in UPI?
Correct Answer: D. Collect Request
A 'Collect Request' is initiated by the receiver to request money from the payer. The payer then receives a notification on their app and must approve the request to transfer funds. This feature is widely used for bill payments and e-commerce checkout.
Which of the following is NOT required for making a UPI transaction?
Correct Answer: D. Account Holder's Date of Birth
A user needs a linked bank account, a registered mobile number, and their secret UPI PIN to complete a transaction. Sensitive personal data like date of birth is not required during the actual payment process. This helps in keeping the transaction process simple and fast.