Question 1

In UPI, what acts as the unique identifier for routing transactions, replacing the need for Account Number + IFSC?

VPA (Virtual Payment Address)Aadhaar NumberPAN NumberMMID

View 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.

Question 2

API Banking allows retail customers to:

Use banking services seamlessly within third-party apps (e.g., paying for Uber using bank account directly).Visit the branch less often.Get higher interest rates.Avoid KYC.

View Explanation

APIs (Application Programming Interfaces) enable secure data sharing, allowing non-banking apps to initiate banking transactions, enhancing user experience and reach.

Question 3

For Initial Public Offering (IPO) subscriptions via UPI, the transaction limit has been enhanced to:

?5 Lakh?10 Lakh?1 Lakh?2 Lakh

View 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.

Question 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.?50,000 and above.?5 Lakh and above.?10 Lakh and above.

View 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.

Question 5

In AePS (Aadhaar Enabled Payment System), which type of transaction is generally NOT supported?

Cash WithdrawalFund Transfer to another Aadhaar linked accountCash Deposit at any bank's ATMBalance Enquiry

View 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.

Question 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 BankThe Payment AggregatorThe Customer

View 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.

Question 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.Visual Pin Authentication; Yes.Verified Payment Authority; No.Virtual Payment Address; No, many people can have the same VPA.

View 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.

Question 8

In BBPS, an "OFF-US" transaction refers to:

The transaction happened outside India.The payment failed.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.

View 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).

Question 9

Interoperability of Prepaid Payment Instruments (PPIs) like wallets via UPI is mandatory for:

All PPIs.Only Gift Cards.Only Mass Transit Cards.Only Full-KYC PPIs.

View 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.

Question 10

What does "NFT" stand for in the context of digital assets?

Non-Fungible TokenNet Foreign TransactionNew Financial ToolNational Fund Transfer

View Explanation

NFTs are unique digital assets verified using blockchain technology. Unlike money (fungible), each NFT is unique and cannot be exchanged like-for-like.

Question 11

Which of the following is a key feature introduced in "UPI 2.0"?

International cash withdrawal.Sending money without internet.Overdraft Account linking and Invoice in the Inbox.Crypto payments.

View 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.

Question 12

Is a "Card Token" generated for a transaction universal?

No, it changes every minute.Yes, it is valid for lifetime.Yes, one token works everywhere.No, a token is unique to a specific combination of Card, Token Requestor (Merchant/App), and Device.

View 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.

Question 13

The "Bharat Bill Payment Central Unit" (BBPCU) which sets the standards for the BBPS ecosystem is:

State Bank of India (SBI)Reserve Bank of India (RBI)Indian Banks' Association (IBA)National Payments Corporation of India (NPCI)

View Explanation

NPCI functions as the authorized BBPCU, responsible for setting business standards, rules, and procedures for technical and business requirements for all participants.

Question 14

A "UPI Mandate" is used for:

Scheduling payments for a future date or recurring payments (like SIP/Subscription).Checking balance.Blocking the account.Instant one-time transfer.

View Explanation

UPI Mandate (AutoPay) allows users to pre-authorize a transaction that will execute later or recurrently, automating bill payments and investments.

JAIIB Quiz

Quiz Finished!