NPCI Products — Set 6

Correct Answer: C. Moving the final funds between banks to close the transaction

A settlement agency is responsible for the actual interbank transfer of money to conclude the transactions processed by NPCI. For most NPCI products, the Reserve Bank of India (RBI) acts as the settlement agency. This ensures that the financial accounts of the participating banks are properly debited and credited.

Correct Answer: D. NACH

NACH (National Automated Clearing House) is the platform used for automated and recurring debit instructions. It is used by banks and financial institutions to collect loan repayments (EMIs) and monthly premiums. It provides a standardized and paperless mandate management system.

Correct Answer: A. Unstructured Supplementary Service Data

USSD stands for Unstructured Supplementary Service Data, which is a communication protocol used by GSM mobile phones. NPCI uses this technology for the *99# service, which allows users to perform banking tasks without internet or an app. It is highly effective for basic feature phones.

Correct Answer: C. RuPay Travel Card

The RuPay Travel Card is designed for international use and can hold multiple foreign currencies. It allows travelers to make payments and withdraw cash in local currency while abroad. This product showcases RuPay's expansion as a global payment network.

Correct Answer: D. Mapping a vehicle's tag to its bank account for toll processing

The NETC central mapper is a repository that links the FASTag ID of a vehicle with the customer's bank account details. When a tag is scanned at a toll plaza, this mapper helps in identifying which bank to debit for the toll amount. It ensures that the electronic toll collection is accurate and seamless across all highways.

Correct Answer: B. UPI

UPI (Unified Payments Interface) has become the most popular method for cashless payments at retail stores. Its ease of use via QR codes and mobile numbers has made it a preferred choice for small merchants. It provides instant credit of funds to the merchant's account.

Correct Answer: D. Aadhaar Payment Bridge

The Aadhaar Payment Bridge (APB) is the primary system for facilitating Direct Benefit Transfers in India. It links government departments with the Aadhaar-linked bank accounts of millions of citizens. This ensures that social security benefits are delivered efficiently and transparently.

Correct Answer: B. Stopping the physical flow of the paper cheque

Truncation is the process of stopping the physical movement of a paper cheque during its clearing cycle. Instead, an electronic image of the cheque is transmitted to the paying branch. This makes the clearing process much faster and reduces the risks associated with handling paper documents.

Correct Answer: C. NETC (FASTag)

The National Electronic Toll Collection (NETC) system, branded as FASTag, automates the toll collection process. By allowing vehicles to pass without stopping for cash, it significantly reduces the travel time and congestion at plazas. It is a key initiative for improving the efficiency of India's road transport system.

Correct Answer: B. Entities that facilitate bill collection and processing in the BBPS ecosystem

BBPOUs are the operational units that interact with customers and billers within the Bharat Bill Payment System. They can be banks or non-bank entities authorized by the RBI. They handle the front-end collection of bills through physical or digital channels.