1. In UPI, what acts as the unique identifier for routing transactions, replacing the need for Account Number + IFSC?
PAN Number
VPA (Virtual Payment Address)
MMID
Aadhaar Number
Explanation:
A VPA (e.g., name@bank) maps to the underlying bank account. It allows users to send/receive money without sharing sensitive bank details like account numbers.
2. API Banking allows retail customers to:
Get higher interest rates.
Avoid KYC.
Visit the branch less often.
Use banking services seamlessly within third-party apps (e.g., paying for Uber using bank account directly).
Explanation:
APIs (Application Programming Interfaces) enable secure data sharing, allowing non-banking apps to initiate banking transactions, enhancing user experience and reach.
3. For Initial Public Offering (IPO) subscriptions via UPI, the transaction limit has been enhanced to:
?10 Lakh
?5 Lakh
?2 Lakh
?1 Lakh
Explanation:
To encourage retail participation in IPOs and G-Secs, NPCI enhanced the per-transaction limit in UPI to ?5 Lakh for specific categories like IPOs and RBI Retail Direct.
4. The "Positive Pay System" for Cheque Truncation System is mandatory for banks to enable, but optional for customers to use, for cheques of value:
?2 Lakh and above.
?5 Lakh and above.
?10 Lakh and above.
?50,000 and above.
Explanation:
RBI guidelines state that banks must provide the facility for all cheques of ?50,000 and above. Banks may consider making it mandatory for cheques of ?5 Lakh and above.
5. In AePS (Aadhaar Enabled Payment System), which type of transaction is generally NOT supported?
Balance Enquiry
Cash Deposit at any bank's ATM
Fund Transfer to another Aadhaar linked account
Cash Withdrawal
Explanation:
AePS is primarily used at Micro-ATMs/BC points for Cash Withdrawal, Deposit (at BC), Balance Enquiry, and Fund Transfer. Cash Deposit at an automated ATM requires a card, not just Aadhaar.
6. "Card-on-File Tokenization" (CoF) replaces sensitive card details with a unique token. Who generates this token?
The Merchant (e.g., Amazon)
The Card Network (Visa/Mastercard/RuPay) or Issuer Bank
The Customer
The Payment Aggregator
Explanation:
Merchants are not allowed to store card data. They request a token from the Card Network/Issuer, which is then used for future transactions.
7. In the context of UPI, what is a "VPA" and is it unique?
Virtual Payment Address; Yes, it must be unique for every user.
Virtual Payment Address; No, many people can have the same VPA.
Verified Payment Authority; No.
Visual Pin Authentication; Yes.
Explanation:
VPA (e.g., user@upi) acts as a unique identifier to map funds to a bank account. Duplicate VPAs are not allowed within the UPI ecosystem.
8. In BBPS, an "OFF-US" transaction refers to:
The biller is onboarded by one entity (Biller OU), and the customer pays through another entity (Customer OU).
The biller and the payment app (Agent) belong to the same entity.
The payment failed.
The transaction happened outside India.
Explanation:
OFF-US transactions leverage the interoperability of BBPS. For example, paying an Electricity Bill (onboarded by Bank A) using the PhonePe app (Customer OU).
9. Interoperability of Prepaid Payment Instruments (PPIs) like wallets via UPI is mandatory for:
Only Mass Transit Cards.
All PPIs.
Only Full-KYC PPIs.
Only Gift Cards.
Explanation:
RBI mandated that Full-KYC PPIs (wallets) must be interoperable across UPI, allowing users to send/receive money to/from any bank account or other wallets.
10. What does "NFT" stand for in the context of digital assets?
Net Foreign Transaction
National Fund Transfer
New Financial Tool
Non-Fungible Token
Explanation:
NFTs are unique digital assets verified using blockchain technology. Unlike money (fungible), each NFT is unique and cannot be exchanged like-for-like.
11. Which of the following is a key feature introduced in "UPI 2.0"?
International cash withdrawal.
Overdraft Account linking and Invoice in the Inbox.
Crypto payments.
Sending money without internet.
Explanation:
UPI 2.0 added features like linking of Overdraft (OD) accounts (earlier only savings/current were allowed), "Invoice in the Inbox" (viewing bills before paying), and "Signed Intent and QR" to enhance security and functionality for merchants and customers.
12. Is a "Card Token" generated for a transaction universal?
No, it changes every minute.
Yes, it is valid for lifetime.
No, a token is unique to a specific combination of Card, Token Requestor (Merchant/App), and Device.
Yes, one token works everywhere.
Explanation:
Tokenization is device and merchant specific. A token generated for Amazon on your mobile cannot be used for Flipkart or on another mobile device, enhancing security.
13. The "Bharat Bill Payment Central Unit" (BBPCU) which sets the standards for the BBPS ecosystem is:
Indian Banks' Association (IBA)
National Payments Corporation of India (NPCI)
State Bank of India (SBI)
Reserve Bank of India (RBI)
Explanation:
NPCI functions as the authorized BBPCU, responsible for setting business standards, rules, and procedures for technical and business requirements for all participants.
14. A "UPI Mandate" is used for:
Checking balance.
Scheduling payments for a future date or recurring payments (like SIP/Subscription).
Instant one-time transfer.
Blocking the account.
Explanation:
UPI Mandate (AutoPay) allows users to pre-authorize a transaction that will execute later or recurrently, automating bill payments and investments.