1. Which of the following is an example of an electronic payment system?
A. Cash deposit at bank counter
B. National Electronic Funds Transfer (NEFT)
C. Cheque clearing
D. Demand draft issuance
NEFT is an electronic payment system that allows fund transfer between banks electronically, unlike cash, cheques, or demand drafts.
2. Which of the following statements about NEFT is correct?
A. NEFT operates on a real-time settlement basis.
B. NEFT transactions are limited to ₹1 lakh per day.
C. NEFT transactions are settled in hourly batches.
D. NEFT is only available on weekdays.
NEFT transactions are processed in hourly batches and are not settled in real time. There is no maximum limit per transaction.
3. RTGS is primarily used for:
A. Retail bill payments
B. Small value transactions under ₹2 lakh
C. Cheque processing
D. High-value interbank fund transfers
RTGS (Real Time Gross Settlement) is used for real-time transfer of high-value funds, typically above ₹2 lakh, directly from one bank to another.
4. What is the minimum amount required for initiating an RTGS transaction?
A. ₹2 lakh
B. ₹50,000
C. ₹1 lakh
D. No minimum limit
As per RBI guidelines, RTGS transactions can be initiated for amounts of ₹2 lakh and above.
5. Which of the following is TRUE about the settlement of NEFT and RTGS?
A. Both NEFT and RTGS settle transactions in real-time.
B. RTGS settles in real-time; NEFT settles in batches.
C. NEFT is for high-value payments; RTGS is for small payments.
D. NEFT is available 24/7; RTGS only during bank hours.
RTGS transactions are settled in real time, while NEFT transactions are processed in hourly batches. NEFT can be used for any amount, not just high value.
6. Which electronic payment system allows 24x7 fund transfer even on holidays in India?
A. RTGS
B. Traditional NEFT before 2019
C. NEFT after RBI enabled 24x7 settlement
D. Cash deposit at bank branch
RBI has made NEFT available 24x7, enabling customers to transfer funds electronically even on weekends and bank holidays.
7. What is the primary purpose of Electronic Clearing Service (ECS)?
A. Real-time high-value interbank transfers
B. Bulk electronic credit or debit of accounts
C. Aadhaar-based cash withdrawals
D. Peer-to-peer UPI payments
ECS allows bulk electronic credit (like salaries, dividends) or debit (like loan EMIs, utility bills) in customer accounts.
8. Which system has largely replaced ECS for bulk electronic payments in India?
A. RTGS
B. NEFT
C. UPI
D. National Automated Clearing House (NACH)
NACH is a centralized system by NPCI that has replaced ECS, providing faster, efficient, and automated bulk payments and collections.
9. Aadhaar enabled Payment System (AePS) primarily allows:
A. Banking transactions using Aadhaar and biometric authentication
B. High-value RTGS transfers
C. NEFT batch settlements
D. Cash deposit through ECS
AePS enables basic banking transactions like cash withdrawal, balance enquiry, and fund transfer using Aadhaar number and biometric authentication.
10. Which of the following is NOT a feature of NACH?
A. Centralized clearing for bulk transactions
B. Faster processing compared to ECS
C. Real-time cash withdrawals at ATMs
D. Automatic debit for recurring payments
NACH is used for bulk credit/debit and recurring payments, but it does not handle real-time cash withdrawals at ATMs.
11. AePS transactions are usually carried out through:
A. NEFT portal
B. Micro-ATM or banking correspondent devices
C. RTGS terminal
D. Online banking portal only
AePS transactions are mostly carried out using micro-ATMs operated by banking correspondents, leveraging Aadhaar and biometrics.
12. One key advantage of NACH over ECS is:
A. Higher transaction charges
B. Limited to salary payments
C. Works only on weekdays
D. Faster and automated processing with centralized control
NACH provides faster processing, centralized control, and supports multiple types of bulk credit and debit transactions, unlike ECS which is slower.
13. What is the primary purpose of the Bharat Bill Payment System (BBPS)?
A. To provide an integrated platform for bill payments across India
B. To enable high-value RTGS transfers
C. To process NEFT transactions in batches
D. To withdraw cash through AePS
BBPS provides a unified and interoperable platform for customers to pay recurring bills like electricity, water, gas, and telecom anywhere in India.
14. Which of the following is TRUE about BBPS?
A. It is limited to state-level billers only
B. Only banks can participate in BBPS
C. Both banks and non-bank entities can participate as agents
D. It supports only cash payments
BBPS allows banks and non-bank entities like billers and bill aggregators to participate, offering interoperable bill payment services digitally or physically.
15. One key advantage of BBPS for customers is:
A. It charges extra fees for inter-state bill payments
B. Convenient single-window access for multiple billers
C. Limited payment options to cash only
D. Only available during bank hours
BBPS provides a single-window, interoperable platform where customers can pay multiple bills conveniently through various modes (digital or physical).
16. Which organization oversees the BBPS in India?
A. SEBI
B. Ministry of Finance
C. NABARD
D. National Payments Corporation of India (NPCI)
NPCI is the umbrella organization managing BBPS to ensure standardized, efficient, and secure bill payment services in India.
17. Benchmarking India’s payment system involves:
A. Comparing Indian banks only among themselves
B. Setting up new payment channels without performance metrics
C. Evaluating performance, efficiency, and adoption of payment systems against global standards
D. Limiting electronic payments to urban areas
Benchmarking assesses the efficiency, reach, and effectiveness of India’s payment systems relative to global best practices to improve overall performance.
18. Which of the following is an indicator used for benchmarking a payment system?
A. Number of ATMs only
B. Transaction success rate, settlement speed, and adoption level
C. Only the cost of RTGS transactions
D. Cash withdrawal limits
Key metrics include transaction success rate, settlement speed, adoption of electronic payments, interoperability, and cost-effectiveness.
19. One of the main benefits of benchmarking India’s payment system is:
A. Identifying gaps and improving efficiency of payment services
B. Reducing cash availability in ATMs only
C. Limiting payment systems to metro cities
D. Standardizing RTGS limits only
Benchmarking helps identify weaknesses, enhance operational efficiency, and encourage adoption of modern payment systems across India.
20. BBPS supports which of the following types of payments?
A. Only electricity bills
B. Only water and gas bills
C. Only telecom bills
D. Multiple recurring bills including electricity, water, gas, telecom, and more
BBPS is a multi-biller platform enabling customers to pay a wide variety of recurring bills conveniently in one place.
21. What is the maximum transaction limit for IMPS per day per account in most banks?
A. ₹1 lakh
B. ₹2 lakh
C. ₹50,000
D. No limit
IMPS allows instant interbank electronic fund transfer with a typical per-day limit of ₹2 lakh, though banks may vary the limit.
22. UPI (Unified Payments Interface) is primarily designed for:
A. Cash withdrawals at ATMs
B. RTGS high-value transfers
C. Instant mobile-based peer-to-peer and merchant payments
D. Clearing ECS bulk transactions
UPI allows real-time instant fund transfer between bank accounts via mobile applications, suitable for both P2P and merchant payments.
23. Prepaid Payment Instruments (PPIs) include all of the following EXCEPT:
A. Wallets like Paytm or PhonePe
B. Gift cards with stored value
C. Prepaid travel cards
D. RTGS transfer instruments
PPIs include mobile wallets, gift cards, and prepaid travel cards, but RTGS is a high-value fund transfer system, not a PPI.
24. Which of the following statements about UPI is TRUE?
A. UPI requires physical bank visits for registration
B. UPI allows linking multiple bank accounts to a single mobile app
C. UPI works only for amounts above ₹2 lakh
D. UPI cannot be used for merchant payments
UPI allows users to link multiple bank accounts to one app, facilitating instant P2P and merchant transactions without visiting a branch.
25. One advantage of IMPS over NEFT is:
A. 24x7 instant fund transfer including holidays
B. Higher transaction limit than RTGS
C. Batch settlement for end-of-day processing
D. Only works during bank working hours
Unlike NEFT, IMPS allows immediate interbank fund transfers 24x7, including weekends and bank holidays.
26. Which of the following is an example of a recent innovation in India’s electronic payment systems?
A. Only cheque clearing improvements
B. Cash deposit machines
C. QR code-based payments and UPI 2.0 features
D. RTGS manual entries
Recent innovations include QR code-based payments, UPI 2.0 with features like invoice in the inbox, one-time mandates, and link-based payments.
