Chapter 50: Technology Trends in Banking, e-RUPI, Fintech - RegTech, SupTech, Hashtag Banking etc. (JAIIB – Paper 2)

1. e-RUPI is primarily designed for which of the following purposes?

  • A. Digital lending for small businesses
  • B. Cryptocurrency-based remittances
  • C. Cashless and contactless prepaid voucher for specific services
  • D. Real-time interbank settlements
e-RUPI is a prepaid, cashless, and contactless digital voucher that can be redeemed at service providers for specific purposes like health care, education, subsidies.

2. Which organization developed e-RUPI in collaboration with banks?

  • A. RBI
  • B. NPCI (National Payments Corporation of India)
  • C. SEBI
  • D. IRDAI
NPCI developed e-RUPI in partnership with the Department of Financial Services, Ministry of Health & Family Welfare, and partner banks.

3. FinTech primarily refers to:

  • A. Financial literacy programs
  • B. Traditional banking operations
  • C. Government fiscal policy measures
  • D. Use of technology to provide innovative financial services
FinTech stands for Financial Technology, which uses advanced technology like AI, blockchain, and mobile apps to provide innovative financial products and services.

4. RegTech solutions are mainly used for:

  • A. Automating compliance and regulatory reporting
  • B. Marketing banking products
  • C. Customer grievance redressal
  • D. ATM cash management
RegTech (Regulatory Technology) helps banks comply with regulations efficiently using automation, AI, and data analytics for reporting and monitoring.

5. SupTech is primarily adopted by:

  • A. Customers for mobile payments
  • B. Banks for cross-selling products
  • C. Regulators for market supervision and oversight
  • D. Startups for fundraising
SupTech (Supervisory Technology) is used by regulators like RBI, SEBI to improve supervision, surveillance, and market oversight using big data and AI tools.

6. Which of the following is an example of Hashtag Banking?

  • A. Using QR codes for UPI payments
  • B. Sending predefined hashtags on Twitter or SMS to avail banking services
  • C. Using mobile apps for balance check
  • D. Chatbot-based financial advisory
Hashtag Banking allows customers to use predefined hashtags via social media or SMS to access services like checking balance or mini statements.

7. Social Media Banking primarily refers to:

  • A. Using WhatsApp groups for customer service
  • B. Providing loans through Facebook advertisements
  • C. Buying financial products via Instagram
  • D. Offering banking services and customer interactions through social media platforms
Social Media Banking means integrating banking services like balance enquiry, service requests, promotions, and grievance handling with platforms like Facebook, Twitter, WhatsApp.

8. Which of the following is the biggest advantage of Social Media Banking for banks?

  • A. Reduction in CRR and SLR requirements
  • B. Direct customer engagement and low-cost marketing
  • C. Increase in statutory audit exemptions
  • D. Elimination of regulatory compliance
Social Media Banking enables banks to engage directly with customers, promote services at low cost, and address issues quickly.

9. Which risk is MOST associated with Social Media Banking?

  • A. Reduced operating expenses
  • B. Faster grievance redressal
  • C. Cybersecurity and data privacy risks
  • D. High credit risk exposure
The biggest challenge of Social Media Banking is data privacy and cybersecurity, since social platforms are vulnerable to phishing and fraud.

10. A bank launches a Twitter handle where customers can tweet #Balance to get account balance details. This is an example of:

  • A. Social Media Banking with Hashtag Banking
  • B. Only Internet Banking
  • C. Blockchain Banking
  • D. Open Banking API
Using hashtags like #Balance or #MiniStatement on social media platforms is an integration of Social Media Banking with Hashtag Banking.

11. Hashtag Banking is primarily used for:

  • A. Processing international remittances
  • B. ATM withdrawals without a card
  • C. Accessing banking services using predefined hashtags on social media or SMS
  • D. Providing insurance services through apps
Hashtag Banking allows customers to send specific hashtags like #Balance or #MiniStatement to avail services instantly through SMS or social media platforms.

12. Which Indian bank was among the first to introduce Hashtag Banking through Twitter?

  • A. SBI
  • B. ICICI Bank
  • C. HDFC Bank
  • D. Axis Bank
ICICI Bank pioneered Hashtag Banking in India by allowing customers to use Twitter hashtags for basic banking services.

13. A customer types #MiniStatement on the bank’s official WhatsApp number. This is an example of:

  • A. Internet Banking
  • B. Mobile Banking only
  • C. Digital Wallet
  • D. Hashtag Banking through Social Media Banking
When customers use hashtags like #MiniStatement via WhatsApp or Twitter, it falls under Hashtag Banking integrated with Social Media Banking.

14. What is the biggest limitation of Hashtag Banking?

  • A. Risk of phishing and unauthorized access if account is linked to social media
  • B. Requires high ATM maintenance cost
  • C. Limited to NEFT transactions only
  • D. Works only on blockchain networks
The key risk in Hashtag Banking is cybersecurity and phishing since it operates on social media platforms where fraudsters may attempt unauthorized access.

15. In Hashtag Banking, if a customer tweets #Balance from an unregistered Twitter handle, the bank will:

  • A. Send balance details to the handle directly
  • B. Reject the request as unregistered accounts are not linked to banking services
  • C. Forward request to customer care
  • D. Lock the customer’s account immediately
Only registered and verified social media handles are allowed for Hashtag Banking. If an unregistered handle is used, the request is rejected for security reasons.

16. The Account Aggregator (AA) framework in India is regulated by:

  • A. RBI
  • B. SEBI
  • C. NPCI
  • D. Ministry of Finance
RBI regulates the Account Aggregator (NBFC-AA) framework, which allows consent-based data sharing between financial entities.

17. What is the primary role of an Account Aggregator (AA)?

  • A. Provide loans directly to customers
  • B. Offer investment advisory services
  • C. Collect and share financial data with user consent across institutions
  • D. Perform credit rating of customers
Account Aggregators are NBFCs licensed by RBI to act as consent managers, enabling secure sharing of financial data like bank statements, insurance, investments, etc.

18. Which of the following is an example of Open Banking?

  • A. Customer using a debit card at an ATM
  • B. A third-party app accessing bank account data via APIs with customer consent
  • C. RBI directly crediting subsidy to beneficiary account
  • D. Bank using CBS for internal reconciliation
Open Banking allows third-party service providers to access customer account information securely through APIs, with explicit consent from the customer.

19. In the Account Aggregator framework, which entity provides consent for data sharing?

  • A. Financial Information Provider (FIP)
  • B. Financial Information User (FIU)
  • C. The Account Aggregator itself
  • D. The Customer
In AA framework, customer consent is central. The AA facilitates secure transmission, but only the customer authorizes sharing of financial data.

20. Which of the following is NOT a potential benefit of Open Banking?

  • A. Better access to customized financial products
  • B. Enhanced financial inclusion
  • C. Increased manual paperwork in banking transactions
  • D. Improved competition and innovation
Open Banking reduces paperwork and manual processes by enabling digital data sharing via APIs. It promotes efficiency, innovation, and financial inclusion.

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