Question 1

A "Brown Label ATM" is one where:

The hardware is owned by a service provider, but cash management and connectivity are provided by a sponsor bank.The ATM is owned by the RBI.The ATM is owned and operated entirely by a non-bank entity.The ATM is located inside a bank branch.

View Explanation

In Brown Label ATMs, the machine and lease are owned by a third party, but the branding and cash handling are done by the sponsor bank. (White Label ATMs are fully non-bank owned).

Question 2

Which of the following is a "Card Not Present" (CNP) transaction?

Withdrawing cash from an ATM.Swiping card at a POS terminal.Online purchase using Credit Card credentials.Using a Contactless Card at a shop.

View Explanation

In online transactions, the physical card is not presented to a merchant. Authentication relies on details (Card No, CVV, Expiry) and 2FA (OTP), making it a CNP transaction.

Question 3

What is "Skimming" in the context of ATM/Card security?

Trapping the cash in the dispenser.Stealing the physical card.Using a device to copy data from the magnetic stripe of the card.Guessing the PIN.

View Explanation

Skimming involves placing a discreet device over the card slot to read the magnetic stripe data, which is then used to clone the card for fraudulent use.

Question 4

Video Customer Identification Process (V-CIP) is a method of:

Face-to-face onboarding at the branch.Phone banking authentication.Non-face-to-face digital onboarding treated at par with face-to-face KYC.ATM surveillance.

View Explanation

V-CIP uses video chat and geotagging to verify the customer remotely. RBI treats it as equivalent to physical KYC, allowing full account functionality.

Question 5

Contactless Cards use "NFC" technology for transactions. What does NFC stand for and what is the typical range?

Near Frequency Chip; up to 100 meters.Network Frequency Control; up to 10 meters.Near Field Communication; up to 4 cm.Non-Financial Card; physical contact required.

View Explanation

NFC (Near Field Communication) is a short-range wireless connectivity standard. It allows two devices (the card and the POS terminal) to communicate when they are brought within a few centimeters (typically < 4 cm) of each other, enabling "Tap and Pay".

Question 6

RuPay is India's indigenous card scheme. It was launched by:

State Bank of India (SBI)Ministry of FinanceReserve Bank of India (RBI)National Payments Corporation of India (NPCI)

View Explanation

NPCI launched RuPay to provide a domestic, cost-effective alternative to international card schemes like Visa and Mastercard, reducing the reliance on cross-border payment processing.

Question 7

What is "mPOS" (Mobile Point of Sale)?

A prepaid mobile recharge shop.A mobile banking app.A smartphone or tablet transformed into a payment terminal using a card reader attachment.A large ATM machine.

View Explanation

mPOS is a cost-effective alternative to traditional bulky POS machines. It allows small merchants to accept card payments using their mobile phones linked to a small card reader.

Question 8

Why did the RBI mandate the migration from Magnetic Stripe cards to EMV Chip and PIN cards?

To increase the storage capacity of the card.Because Magnetic Stripe data is static and easily cloned (Skimming), whereas EMV chips use dynamic authentication.To reduce the cost of printing cards.To support contactless payments only.

View Explanation

EMV (Europay, Mastercard, and Visa) is the global standard for chip-based debit and credit cards. Unlike magnetic stripes which contain static data that can be easily copied/skimmed to create counterfeit cards, EMV chips generate a unique transaction code for every transaction, making cloning extremely difficult and enhancing security.

Question 9

In an ATM, what is the function of "Cassettes"?

To capture video footage.To store currency notes of specific denominations for dispensing.To read the card details.To print receipts.

View Explanation

Cassettes are the removable boxes inside the ATM safe where cash is loaded. Typically, an ATM has 4 cassettes, each configured for a specific denomination (e.g., ?500, ?100, ?200).

Question 10

A "Neobank" is best described as:

A digital-only financial entity without physical branches, often partnering with traditional banks to offer services.A bank for neon sign manufacturers.A traditional bank with a new name.A rural cooperative bank.

View Explanation

Neobanks operate entirely online/mobile. In India, since RBI does not yet issue virtual banking licenses, they typically partner with licensed scheduled banks to hold customer deposits while providing a superior UI/UX layer.

Question 11

What is "SIM Swap Fraud"?

Fraudsters obtaining a duplicate SIM card of the victim's number to intercept OTPs.Exchanging old SIM for a new one legally.Selling SIM cards illegally.Using dual SIMs in a phone.

View Explanation

In SIM Swap, the attacker convinces the mobile operator to issue a new SIM card for the victim's number. Once activated, the attacker receives all SMS/OTPs intended for the victim, bypassing 2FA security.

JAIIB Quiz

Quiz Finished!