Digital Payments — Set 6
Banking · डिजिटल भुगतान · Questions 51–60 of 90
What is the primary function of the 'NUUP' system?
Correct Answer: C. Mobile banking on feature phones via *99#
National Unified USSD Platform (NUUP) is the back-end system that powers the *99# service. It allows banking without a smartphone or internet connection. It is a critical tool for reaching the 'unbanked' population in remote areas.
Which card is specifically designed for international travelers and can hold multiple currencies?
Correct Answer: D. Forex Card
A Forex Card is a pre-loaded card that allows you to access money in a foreign currency while traveling abroad. It often offers better exchange rates than cash and protects users from currency fluctuations. These cards are safer than carrying large amounts of physical foreign currency.
What is the full form of 'MMID'?
Correct Answer: B. Mobile Money Identifier
Mobile Money Identifier (MMID) is a unique 7-digit number issued by banks for IMPS transactions. It is used in combination with a mobile number to identify a specific bank account. This allows for money transfers without knowing the recipient's bank account number.
Which organization recently introduced 'UPI Lite' for small value offline-like transactions?
Correct Answer: C. NPCI
UPI Lite was launched by NPCI to enable fast transactions for amounts below Rs. 200 without using a UPI PIN. It uses an on-device wallet to reduce the load on the banking core system. This feature helps in reducing transaction failures during peak hours.
What does 'PSP' stand for in the UPI ecosystem?
Correct Answer: B. Payment Service Provider
Payment Service Providers (PSPs) are banks or technology companies that offer UPI apps to users. They act as an interface between the user and the NPCI's central system. Examples of PSPs include bank apps and third-party apps like Google Pay or PhonePe.
What is the term for a card that has an embedded microchip for enhanced security?
Correct Answer: C. EMV Chip Card
EMV (Europay, Mastercard, and Visa) chip cards use a microchip to store and protect cardholder data. They are much harder to clone than old magnetic stripe cards. Most banks in India have now migrated to EMV chip cards as per RBI mandates.
Which system allows for 'Direct Debit' of a bank account for recurring insurance premiums?
Correct Answer: C. NACH Debit
NACH Debit allows organizations to collect payments directly from customers' bank accounts after a mandate is signed. It is widely used for loan EMIs, insurance premiums, and SIPs in mutual funds. The system ensures that payments are made on time without manual intervention.
What is the maximum limit for a 'UPI Lite' transaction currently?
Correct Answer: B. Rs. 500
NPCI increased the per-transaction limit for UPI Lite to Rs. 500 in 2023 to accommodate more retail payments. The total balance limit on the on-device wallet is Rs. 2,000. It is designed for 'near-offline' transactions to improve success rates for small payments.
Which entity is the regulatory body for all 'Payment Systems' in India?
Correct Answer: D. RBI
The Reserve Bank of India (RBI) is the supreme regulator of all payment and settlement systems in the country. It provides authorizations to entities like NPCI and private wallet operators. The RBI's 'Payment and Settlement Systems Act' provides the legal framework for this oversight.
What does 'RTGS' stand for?
Correct Answer: A. Real Time Gross Settlement
Real Time Gross Settlement (RTGS) allows for the continuous and real-time settlement of fund transfers. 'Gross' means the transaction is processed individually without netting it with other transactions. It is the fastest possible way to transfer money between banks for high-value amounts.