Digital Payments — Set 7

Correct Answer: B. National Electronic Fund Transfer

• **National Electronic Fund Transfer** = NEFT is a nationwide payment system operated by RBI that allows one-to-one fund transfer between bank accounts across India. • **24x7 since 2019** — RBI made NEFT available round-the-clock from December 2019; earlier it ran in half-hourly batches only during working hours. • NEFT settles in batches (not real-time), unlike IMPS which is instant. • 💡 **National Entry Fund Transfer** — 'Entry' is not a banking term here; **Native** means local/indigenous, not the correct expansion; **Finance Transfer** is incorrect — the word is 'Fund.'

Correct Answer: C. Mastercard

• **Mastercard** = Mastercard is a private American multinational corporation headquartered in New York — it has no connection to NPCI or the Indian government. • **NPCI products** — RuPay (card network), IMPS (instant transfer), BHIM (UPI app), UPI, NACH, FASTag, BBPS are all NPCI products. • NPCI was set up by RBI and IBA in 2008 to build India's own payment infrastructure and reduce dependence on foreign networks. • 💡 **RuPay** — India's own card network, launched by NPCI in 2012; **IMPS** — Immediate Payment Service, managed by NPCI; **BHIM** — government UPI app built by NPCI.

Correct Answer: B. 10 years

• **10 years** = As per RBI guidelines, minors aged 10 years and above can independently open and operate a savings bank account with limited facilities. • **Features** — They can get a debit card and use mobile/internet banking, but with lower transaction limits set by the bank. • Full banking rights (like credit cards, loans) begin at 18 years of age. • 💡 **15 years** — No such RBI age threshold exists; **18 years** — this is the age for full banking rights, not the minimum account-opening age; **21 years** — no banking restriction at 21.

Correct Answer: B. Pay to VPA

• **Pay to VPA** = A push transaction means the payer initiates the transfer — they enter the receiver's VPA (Virtual Payment Address) and push money from their account. • **Pull vs Push** — A pull transaction is when the receiver requests money (Collect Request); the payer then approves it. • Merchant pull (used at POS) is also a pull transaction because the merchant's system requests the amount from the customer. • 💡 **Requesting Money** — this is a pull, not a push; **Collect Request** — also a pull transaction; **Merchant pull** — the name itself says 'pull.'

Correct Answer: B. Quick Response

• **Quick Response** = QR stands for Quick Response — named for the speed at which a camera or scanner can read and decode the embedded data. • **Storage** — A QR code can store far more data than a standard barcode: URLs, UPI IDs, account numbers, and amounts. • In India, UPI QR codes (static and dynamic) are the primary method for merchant payments — the same QR works across all UPI apps (interoperable). • 💡 **Query Response** — no such standard exists; **Quick Reference** — incorrect expansion; **Quality Response** — unrelated to QR code technology.

Correct Answer: D. FASTag

• **FASTag** = FASTag is an RFID-based electronic toll collection system operated by NHAI and NPCI — a sticker affixed to the windscreen is read at toll plazas without stopping. • **How it works** — Toll amount is auto-debited from the linked prepaid wallet or bank account; the tag uses RFID (Radio Frequency Identification), not NFC or Bluetooth. • FASTag became mandatory for all four-wheelers in India from February 2021. • 💡 **AEPS** — uses Aadhaar biometrics at PoS, not toll gates; **IMPS** — a bank transfer system, not a vehicle payment system; **UPI** — requires a smartphone app, not a windscreen sticker.

Correct Answer: A. Rs. 5,00,000

• **Rs. 5,00,000** = RBI raised the IMPS per-transaction limit from ₹2 lakh to ₹5 lakh in October 2021 to facilitate higher-value instant transfers. • **24x7 real-time** — IMPS is unique because it works round-the-clock including bank holidays, unlike NEFT (batch-based) and RTGS (minimum ₹2 lakh). • Individual banks may set lower sub-limits based on their own risk policies. • 💡 **₹1,00,000** — this was an older per-transaction cap; **₹2,00,000** — this was the limit before the October 2021 revision; **₹50,000** — this applies to *99# (USSD), not IMPS.

Correct Answer: C. Maestro

• **Maestro** = Maestro is a global debit card service owned by Mastercard, an American private company — it has no link to NPCI or India's payment infrastructure. • **NPCI's portfolio** — RuPay (card), NACH (National Automated Clearing House), IMPS, UPI, BHIM, BBPS, FASTag, CTS, and AePS are all NPCI products. • NACH is used for recurring auto-debits like EMIs, insurance premiums, and utility bills. • 💡 **RuPay** — India's indigenous card network by NPCI; **NACH** — NPCI's mandate-based auto-debit system; **IMPS** — Immediate Payment Service managed by NPCI.

Correct Answer: B. Immediate Payment Service

• **Immediate Payment Service** = IMPS is an instant, 24x7 inter-bank electronic fund transfer service managed by NPCI — the key word is 'Immediate' because transfers settle in real-time. • **Launched 2010** — IMPS was the first real-time payment system in India, initially mobile-only, now available via net banking and ATMs too. • IMPS works on bank holidays and at any hour, making it the most versatile fund transfer option. • 💡 **Instant Mobile Payment System** — 'Mobile' is not part of the full form; **Instant Money** — wrong; the correct word is 'Immediate'; **Internal Payment Service** — IMPS is inter-bank, not internal.

Correct Answer: D. Supplementary

• **Supplementary** = USSD = Unstructured Supplementary Service Data — a GSM protocol used for real-time two-way communication between a mobile and the network. • **Banking use** — In India, *99# uses USSD to allow basic banking (balance check, fund transfer) without internet or a smartphone; daily limit is ₹5,000. • USSD sessions are live connections that close when the menu is exited, unlike SMS which is store-and-forward. • 💡 **Service** — 'Service' appears in USSD but at a different position (it is 'Service Data', not 'Service'); **System** — not part of the expansion; **Standard** — incorrect; the correct word is 'Supplementary.'