Digital Payments — Set 9

Correct Answer: C. NPCI

• **NPCI** = RuPay was launched by the National Payments Corporation of India (NPCI) in 2012 as India's own domestic card network — an alternative to Visa and Mastercard. • **Name origin** — 'RuPay' is a blend of 'Rupee' and 'Payment'; it operates across ATMs, PoS terminals, and e-commerce platforms; also has a contactless (NFC) variant. • RuPay is issued by most Indian banks including public sector banks; Jan Dhan account holders receive RuPay debit cards. • 💡 **SBI** — SBI issues RuPay cards but did not create the network; **IBA** — Indian Banks' Association is an industry body, not a card network; **RBI** — RBI regulates payment systems but does not create card networks; NPCI was established by RBI and IBA jointly.

Correct Answer: C. Bharat Interface for Money

• **Bharat Interface for Money** = BHIM is a government UPI app developed by NPCI, named after Dr. B.R. Ambedkar — it was launched by PM Narendra Modi on December 30, 2016 at Talkatora Stadium, Delhi. • **Features** — BHIM works using mobile number or VPA; supports *99# USSD-based payments for feature phones via BHIM *99#; available in 20+ languages. • BHIM was India's first dedicated UPI app and became the reference platform for UPI adoption. • 💡 **Bharat Hub for Instant Money** — 'Hub' and 'Instant' are not in the expansion; **Bharat Heavy Interface** — 'Heavy' is from BHEL (Bharat Heavy Electricals), unrelated; **Bank Hub for Instant Money** — 'Bank Hub' is incorrect; BHIM stands for Bharat Interface for Money.

Correct Answer: D. 2016

• **2016** = UPI was officially launched on April 11, 2016, by Dr. Raghuram Rajan (then RBI Governor) in Mumbai — 21 banks were live on the platform at launch. • **Growth** — UPI crossed 1 billion monthly transactions in October 2019; by 2023-24, UPI processes over 13 billion transactions per month, making India the global leader in real-time payments. • Demonetisation (November 2016) acted as a major catalyst for UPI adoption immediately after its launch. • 💡 **2017** — UPI was already launched by 2017; BHIM app (December 2016) came after UPI's April 2016 launch; **2014** — RBI was still developing the framework then; **2015** — NPCI began pilots internally but the official launch was 2016.

Correct Answer: A. IMPS

• **IMPS** = Immediate Payment Service (IMPS), managed by NPCI, offers instant real-time fund transfers 24x7 including bank holidays — it was launched in November 2010. • **Comparison** — NEFT (RBI-managed) is batch-based and became 24x7 only from December 2019; RTGS (RBI-managed) is real-time but has a minimum transaction amount of ₹2 lakh; IMPS has no minimum and is always instant. • IMPS is the underlying settlement mechanism that also powers many UPI transactions. • 💡 **CTS** — Cheque Truncation System, used for cheque clearance, not electronic fund transfer; **NEFT** — batch-based, not truly instant; **RTGS** — real-time but only for high-value (≥₹2 lakh) transactions and managed by RBI, not NPCI.

Correct Answer: A. RFID

• **RFID** = FASTag uses Radio Frequency Identification (RFID) technology — a reader at the toll plaza emits radio waves that activate the passive RFID chip in the windscreen sticker, which responds with the vehicle's tag ID. • **Auto-debit** — Once identified, the toll amount is instantly debited from the linked FASTag wallet or bank account; a beep and green signal allow the vehicle to pass. • FASTag became mandatory for all four-wheelers in India from February 15, 2021, under NHAI's National Electronic Toll Collection (NETC) program. • 💡 **Bluetooth** — short-range, requires pairing, not suitable for fast-moving vehicles at toll gates; **GPS** — tracks location, does not enable payment; **Infrared** — used in TV remotes and proximity sensors, not toll collection.

Correct Answer: C. *99#

• ***99#** = Dialling *99# on any GSM mobile phone connects to the USSD-based mobile banking service — it works without internet, data plan, or a smartphone. • **Limit and services** — *99# allows balance enquiry, mini-statement, fund transfer (to mobile/MMID or Aadhaar), and BHIM UPI payments; daily transfer limit is ₹5,000. • This service is especially useful for feature-phone users in rural areas who cannot access app-based banking. • 💡 ***121#** — used by telecom operators (Airtel, Jio) for balance/recharge checks, not banking; ***100#** — emergency police helpline; ***141#** — not a standardised banking shortcode.

Correct Answer: B. RuPay

• **RuPay** = RuPay is India's domestic card network created and operated by NPCI, which is itself a Section 8 (not-for-profit) company under the Companies Act — profits are reinvested into payment infrastructure development. • **Cost advantage** — Because NPCI is not-for-profit, interchange fees on RuPay transactions are lower than Visa/Mastercard, making it more affordable for banks and merchants. • Government-backed schemes like PMJDY (Jan Dhan) issue RuPay cards; PMSBY and PMJJBY insurance cover is also linked to RuPay cards. • 💡 **Visa** — American for-profit corporation listed on NYSE; **American Express** — American for-profit financial services company; **Mastercard** — American for-profit corporation; all three are global private companies, not not-for-profit.

Correct Answer: C. 4 or 6

• **4 or 6** = A UPI PIN is either 4 digits or 6 digits — the length depends on the bank; older banks typically use 4-digit PINs, while many newer setups default to 6 digits for added security. • **Authentication** — The UPI PIN is entered on the app's secure keyboard to authorise every outgoing transaction; it is separate from the login PIN or MPIN for the app itself. • The PIN is set during initial bank account linking and can be reset using the debit card details via the UPI app. • 💡 **8 digits** — no bank uses an 8-digit UPI PIN; **10 digits** — that is the length of a mobile number, not a PIN; **12 digits** — no standard allows a 12-digit UPI PIN.

Correct Answer: C. RBI

• **RBI** = The Reserve Bank of India (RBI) is the sole regulatory authority for all payment and settlement systems in India under the Payment and Settlement Systems (PSS) Act, 2007. • **PSS Act 2007** — This act gave RBI statutory power to regulate, supervise, and licence payment systems (NEFT, RTGS, UPI, cards, wallets, etc.); the Board for Regulation and Supervision of Payment and Settlement Systems (BPSS) under RBI oversees this. • NPCI operates the retail payment systems, but RBI is the regulator that licences and oversees NPCI itself. • 💡 **IRDAI** — regulates insurance companies, not payment systems; **SEBI** — regulates securities markets (stocks, mutual funds); **NABARD** — regulates rural and agricultural banks (RRBs, cooperative banks), not payment infrastructure.

Correct Answer: D. Bharat Bill Payment System

• **Bharat Bill Payment System** = BBPS is an NPCI-operated integrated bill payment platform that provides interoperable, accessible bill payment services across India — one platform, all billers. • **Coverage** — BBPS covers electricity, water, gas, telecom, DTH, broadband, insurance premium, loan EMI, school fees, housing society dues, and more through a network of agents, bank branches, and apps. • Customers get instant confirmation and a standardised receipt regardless of which channel they use to pay. • 💡 **Bharat Board Payment System** — 'Board' is incorrect; **Bank Bill Payment Service** — it is not a bank; NPCI operates it; **Basic Bill Payment Scheme** — 'Basic' and 'Scheme' are both incorrect; the correct expansion is 'Bharat Bill Payment System.'