Digital Payments — Set 8
Banking · डिजिटल भुगतान · Questions 71–80 of 90
Which type of cards can be used to withdraw cash from ATMs but not used for credit?
Correct Answer: A. Debit Card
A debit card allows you to withdraw cash up to the balance available in your bank account. Unlike a credit card, it does not involve a loan from the bank. It is the most common type of card issued to savings account holders in India.
What is the full form of AEPS?
Correct Answer: B. Aadhaar Enabled Payment System
Aadhaar Enabled Payment System (AEPS) is a bank-led model which allows online interoperable financial inclusion transactions at PoS. It requires only the Aadhaar number and biometric authentication. It has been a game-changer for banking in remote rural areas.
What is the role of an 'Acquiring Bank' in a digital payment?
Correct Answer: D. The bank that processes payments on behalf of the merchant
The acquiring bank is the financial institution that maintains the merchant's bank account. It accepts the transaction data from the merchant and forwards it to the card network or issuing bank for approval. The issuing bank is the one that provides the card to the customer.
Which of these is a 'Virtual Card'?
Correct Answer: A. An electronic card that exists only in digital form
A virtual card is a digital-only payment card that comes with a 16-digit number, expiry date, and CVV. It can be used for online shopping but does not have a physical form for swiping. This adds a layer of security as the virtual card can often be deleted or blocked instantly.
Which platform is used by NPCI to settle Bharat BillPay transactions?
Correct Answer: D. Bharat Bill Pay Central Unit (BBPCU)
The BBPCU acts as the central system that handles the clearing and settlement for all BBPS transactions. It sets technical standards and business rules for all participants. NPCI functions as the BBPCU for the entire country.
What is the maximum limit for an e-RUPI voucher currently per person per purpose?
Correct Answer: B. Rs. 1,00,000
The RBI increased the cap on e-RUPI vouchers from Rs. 10,000 to Rs. 1 lakh in 2022. It also allowed for multiple uses of the same voucher until the amount is exhausted. This makes it more useful for high-value government welfare schemes.
What technology is used by ATMs to read the information on a card's magnetic stripe?
Correct Answer: B. Magnetic Induction
ATMs use magnetic induction to read the tiny magnets embedded in the magnetic stripe of a card. This stripe contains encoded information about the cardholder's account. However, this technology is being replaced by more secure EMV chips.
Which is the first country to adopt India's UPI system outside India?
Correct Answer: C. Bhutan
Bhutan became the first country to adopt India's UPI standards for its QR deployment in July 2021. Nepal followed shortly after, becoming the first country to implement UPI as a payment platform. This marks the global expansion of India's indigenous payment technologies.
What is 'Account Aggregator' in digital finance?
Correct Answer: A. A type of NBFC that helps users share their financial data securely
An Account Aggregator (AA) is a type of RBI-regulated entity that helps individuals securely and digitally access and share information from one financial institution to another. It works on the principle of explicit customer consent. This framework facilitates easy access to loans and other financial products.
What is the meaning of 'Interoperability' in digital payments?
Correct Answer: B. The ability of different systems or apps to work together seamlessly
Interoperability allows a user of one payment app (e.g., PhonePe) to pay a merchant who uses a different bank or app (e.g., BharatPe). UPI is a prime example of an interoperable system. This creates a unified ecosystem and prevents the fragmentation of digital payments.