1. Which unique code is essential for mapping a customer's bank account to their Aadhaar number for AePS transactions?
SWIFT Code
IFSC Code
MICR Code
IIN (Issuer Identification Number)
Explanation:
The IIN is a 6-digit number issued by NPCI that identifies the bank to which the customer's Aadhaar is linked, enabling Aadhaar-based routing.
2. What is the maximum transaction limit per day for UPI (Unified Payments Interface) for normal transactions (as of standard NPCI guidelines)?
?5 Lakh
?1 Lakh
?50,000
?2 Lakh
Explanation:
The standard UPI limit is ?1 Lakh per day. (Note: For specific categories like IPOs, Retail Direct Scheme, and Medical/Education, the limit has been enhanced to ?5 Lakh, but the general limit remains ?1 Lakh).
3. The "Bharat Bill Payment System" (BBPS) is an integrated bill payment system offering interoperable bill payment service. Who operates BBPS?
Explanation:
The National Payments Corporation of India (NPCI) functions as the Bharat Bill Payment Central Unit (BBPCU) responsible for setting standards and operating the BBPS.
4. Which entity regulates the "Prepaid Payment Instruments" (PPIs) like Mobile Wallets in India?
Explanation:
The Reserve Bank of India regulates PPIs under the Payment and Settlement Systems Act, 2007. Issuers must obtain authorization from RBI.
5. What is the maximum transaction limit for IMPS (Immediate Payment Service) as per current NPCI guidelines?
?2 Lakh
?5 Lakh
?1 Lakh
?10 Lakh
Explanation:
The limit for IMPS transactions was enhanced from ?2 Lakh to ?5 Lakh to facilitate larger instant transfers.
6. e-NACH (Electronic NACH) mandate authentication is primarily done using:
Netbanking or Debit Card credentials
Visiting the branch
Voice recognition
Physical Signature
Explanation:
e-NACH reduces the turnaround time for mandate registration by using electronic authentication via Netbanking or Debit Card, replacing physical paper mandates.
7. UPI LITE is an on-device wallet feature designed for:
Crypto trading.
International transfers.
High value transactions.
Small value transactions without PIN.
Explanation:
UPI LITE allows users to make small value transactions (up to ?500) without entering a UPI PIN, improving success rates and reducing load on the core banking system.
8. In the context of "UPI AutoPay" for recurring payments, what is the transaction limit up to which the UPI PIN is NOT required for execution (after the mandate is set)?
?2,000
?5,000
?1 Lakh
?15,000
Explanation:
Initially set at ?5,000, the RBI enhanced the limit for e-mandates on cards and UPI for recurring payments (like subscriptions, insurance premiums) to ?15,000 without the need for Additional Factor of Authentication (AFA/PIN) during the transaction execution, improving convenience for users.
9. In the Bharat Bill Payment System (BBPS), the entity that onboards the Biller is known as:
Customer Operating Unit (COU)
Agent Institution
Biller Operating Unit (BOU)
Central Unit (BBPCU)
Explanation:
BBPS has a tiered structure. The Biller Operating Unit (BOU) is the entity responsible for onboarding billers (like electricity boards, telecom companies) into the BBPS ecosystem. The Customer Operating Unit (COU) interacts with the customer (payer).
10. As per RBI guidelines on "Card-on-File Tokenization" (CoFT), who is authorized to save the actual Card details?
Only the Card Issuer (Bank) and Card Network (Visa/Mastercard)
The Payment Aggregator
Anyone with customer consent
The Merchant (e.g., Amazon, Flipkart)
Explanation:
To enhance security, RBI mandated that merchants and payment aggregators cannot save actual card details (Card-on-File). They must use "Tokens" generated by the Card Network/Issuer. Only the Issuer and Network can store the real data.
11. What is the difference between "NACH Credit" and "NACH Debit"?
NACH Credit requires PIN; NACH Debit does not.
There is no difference.
NACH Credit is for collections (e.g., Bill payments); NACH Debit is for payouts (e.g., Salary).
NACH Credit is for payouts (e.g., Salary, Dividend); NACH Debit is for collections (e.g., Loan EMI, SIP).
Explanation:
NACH Credit is a "Push" system used to distribute funds to many beneficiaries (One-to-Many) like subsidies or salaries. NACH Debit is a "Pull" system used to collect funds from many payers (Many-to-One) like utility bills or loan repayments.
12. The recent "PPI interoperability through UPI" allows customers to:
Use their Prepaid Wallets (like Paytm/PhonePe Wallet) to pay at any UPI QR code.
Send money from Wallet to Wallet only.
Use their Bank Account to pay via Wallet QR codes.
Withdraw cash from wallets at ATMs.
Explanation:
This feature allows Full-KYC Wallet users to scan any standard UPI QR code of a merchant and pay using their wallet balance, breaking the closed-loop restriction of wallets.
13. FASTag uses which technology for electronic toll collection?
Bluetooth
QR Code
RFID (Radio Frequency Identification)
NFC (Near Field Communication)
Explanation:
FASTag is a reloadable tag employing RFID technology. It is affixed on the vehicle's windscreen and enables automatic deduction of toll charges when the vehicle passes through the toll plaza.
14. A "Bharat QR" code differs from a standard UPI QR code because:
It only works for SBI customers.
It requires a physical machine.
It supports payments via Cards (Visa/Mastercard/RuPay) in addition to UPI.
It is slower.
Explanation:
Bharat QR is an interoperable QR code solution that enables customers to pay using their debit/credit cards (by scanning via banking app) without needing a physical POS terminal.
15. The "Digital Payments Index" (RBI-DPI) measures the extent of digitization of payments across the country. What is the base period for this index?
April 2016
January 2020
March 2011
March 2018
Explanation:
The RBI-DPI comprises 5 broad parameters: Payment Enablers, Payment Infrastructure (Demand-side factors), Payment Infrastructure (Supply-side factors), Payment Performance, and Consumer Centricity. The Base Period for the index has been set as March 2018 (Score = 100). It helps in mapping the deepening of digital payments in India accurately.
16. What is the key difference between a "Payment Gateway" and a "Payment Aggregator" (PA)?
Gateways provide technology infrastructure; Aggregators handle funds settlement and onboard merchants.
Gateways work only with Credit Cards; Aggregators work with UPI.
Aggregators are unregulated; Gateways are regulated.
Gateways handle funds; Aggregators only provide technology.
Explanation:
A Payment Gateway acts as a technological pipe to transmit data. A Payment Aggregator (PA) facilitates merchants to accept various payment instruments without the need for the merchant to create a separate payment integration system of their own. PAs handle the actual funds, settling them to merchants, and are thus regulated by RBI (Guidelines on PA/PG).
17. As per RBI Guidelines on Digital Lending (2023), what is the cap on "First Loss Default Guarantee" (FLDG) provided by a Lending Service Provider (LSP) to a Regulated Entity (Bank)?
0% (Not allowed)
5% of the outstanding portfolio
10% of the loan amount
20% of the outstanding portfolio
Explanation:
RBI permits FLDG arrangements between Regulated Entities (Banks/NBFCs) and their partner LSPs (Fintechs), subject to a strict cap of 5% of the amount of the loan portfolio. This ensures the lender still holds the primary credit risk while allowing fintech innovation.
18. What is the current maximum limit for a UPI transaction for specific categories like IPO subscriptions and Retail Direct Schemes?
?1 Lakh
?5 Lakh
?2 Lakh
?10 Lakh
Explanation:
While the general UPI transaction limit is ?1 Lakh, NPCI has enhanced the limit to ?5 Lakh for specific use cases like IPO applications, RBI Retail Direct Scheme, and payment for educational/medical institutions to encourage digital adoption for high-value payments.
19. In an IMPS (Immediate Payment Service) transaction using Mobile Number and MMID, the length of the MMID (Mobile Money Identifier) is:
7 digits
6 digits
10 digits
4 digits
Explanation:
MMID is a 7-digit random number issued by the bank to the customer upon registration for mobile banking. The first 4 digits represent the unique bank code, and the last 3 digits identify the user account. It enables fund transfers using just Mobile No + MMID, preserving privacy of account details.
20. The "NETC" program which governs FASTag operations stands for:
National Express Transport Corporation
New Electronic Toll Clearing
Network for Electronic Transfer of Cash
National Electronic Toll Collection
Explanation:
NETC (National Electronic Toll Collection) is the flagship program of NPCI developed to meet the electronic tolling requirements of the Indian market using RFID technology (FASTag).
21. As per RBI guidelines, Payment Aggregators (PAs) must maintain the funds collected from customers in an escrow account. The funds from this account must be settled to the merchant within:
Whenever the merchant asks
30 days
7 days
T+0 or T+1 day
Explanation:
To protect merchant funds, RBI mandates strict settlement timelines. For PAs, the final settlement to the merchant must happen typically by T+1 (where T is the date of transaction capture) to ensure liquidity for the merchant.
22. In an IMPS transaction, if the remitter uses "P2A" (Person-to-Account) mode, what details are mandatory?
Beneficiary Mobile Number and MMID.
Beneficiary UPI ID.
Beneficiary Account Number and IFSC Code.
Beneficiary Aadhaar Number.
Explanation:
IMPS offers two main modes: P2P (Person-to-Person) using Mobile Number + MMID, and P2A (Person-to-Account) using Account Number + IFSC. P2A is useful when the beneficiary is not registered for mobile banking but has a bank account.
23. Which subsidiary of NPCI is responsible for taking UPI and RuPay products to international markets?
NPCI Digital Solutions
NPCI International Payments Ltd (NIPL)
National Switch of India
NPCI Bharat BillPay Ltd (NBBL)
Explanation:
NIPL was incorporated in 2020 as a wholly-owned subsidiary of NPCI to internationalize India’s indigenous payment offerings like UPI and RuPay cards, partnering with countries like Singapore, UAE, and Nepal.
24. In the NETC FASTag ecosystem, the "Acquirer Bank" is responsible for:
Issuing FASTag to vehicle owners.
Managing the toll plaza infrastructure and processing transactions sent by the toll plaza.
Manufacturing the RFID tags.
Setting the toll rates.
Explanation:
The Issuer Bank issues the tag to the customer (vehicle owner). The **Acquirer Bank** onboards the Toll Plaza operator and acquires the transaction when a vehicle passes through, routing it to the Issuer for debit.
25. In AePS, an "Off-us" transaction means:
A transaction where the customer and the BC belong to different banks.
A transaction where the customer and the Business Correspondent (BC) belong to the same bank.
A failed transaction.
An offline transaction.
Explanation:
"On-us" means the card/account and the terminal belong to the same bank. "Off-us" means they are different (e.g., SBI customer using an HDFC Bank BC point), requiring routing through the NPCI switch.
26. In the BBPS framework, "Agent Institutions" are:
The Tech support team.
The Billers themselves.
The RBI offices.
Entities that act as aggregators for a network of agents (like shopkeepers) who offer bill payment services to the public.
Explanation:
Agent Institutions recruit and manage physical agents (human touchpoints) to allow cash-based bill payments for customers who are not digitally savvy.
27. Why do PPI issuers (Wallet companies) maintain an "Escrow Account"?
To earn high interest.
To ensure that funds collected from customers are secured and available for redemption/payment to merchants, preventing misuse.
To pay salaries to employees.
To invest in the stock market.
Explanation:
RBI mandates that the core funds of customers in a PPI must not be co-mingled with the company's own funds. An Escrow Account ensures these funds are ring-fenced and used only for settled payments.
28. The Online Dispute Resolution (ODR) system is mandatory for which payments ecosystem?
Cash Transactions
Locker Operations
Digital Payments (UPI, Cards, PPIs)
Cheque Clearing
Explanation:
RBI mandated authorized Payment System Operators (PSOs) to implement an ODR system for resolving disputes and grievances related to failed transactions in a transparent, rule-based, and automated manner.