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13 Flashcards

1
Q

term “fiducia”

A

From the Latin “fiducia”, the value of this kind of money lies in the trust it generates.

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2
Q

Central Banks play three main roles in the Payment and Settlement Systems viz.

A

system provider, regulator and user.

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3
Q

LVPS)

A

large value payment systems

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4
Q

In the Mauryan period, an instrument called “_____________-” was in use,

A

adesha

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5
Q

The earliest payment instruments known to have been used in India were coins, which were

A

either punch-marked or cast in silver and copper.

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6
Q

The most important class of credit Instruments that evolved in India were termed

A

Hundis.

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7
Q

____________________- was an order on a banker desiring him to pay the money of the note to a third person, which corresponds to the definition of a bill of exchange as we understand it today.

A

adesha”

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8
Q

Hundis use was most widespread in the

A

twelfth century

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9
Q

Paper money, in the modern sense, has its origin in the

A

late 18th century

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10
Q

Amongst the earliest issues of paper money were those by the

A

Bank of Hindoostan, the General Bank in Bengal and Behar, and the Bengal Bank.

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11
Q

The _________________ conferred upon the Government of India the monopoly of Note Issue bringing to an end note issues of private and Presidency Banks.

A

Paper Currency Act of 1861

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12
Q

Cheques were introduced by

A

Bank of Hindoostan

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13
Q

Bank of Hindoostan, the first joint stock bank established in

A

1770

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14
Q

In _________________ cash credit accounts were added to the Bank of Bengal’s array of credit instruments.

A

1833

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15
Q

Buying and selling bills of exchange became one of the items of business to be conducted by

A

Bank of Bengal from 1839

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16
Q

In 1881, the Negotiable Instruments Act (NI Act) was enacted, formalising the usage and characteristics of instruments like

A

the cheque, the bill of exchange and promissory note.

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17
Q

————————- provided a legal framework for non-cash paper payment instruments in India.

A

NI Act

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18
Q

setting up of the Imperial Bank in

A

1921

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19
Q

As per ________________- RBI is the designated authority for the regulation and supervision of payment systems under the Act.

A

Section 3 of the Payment and Settlements Act 2007,

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20
Q

BPSS),

A

Board for Regulation and Supervision of Payment and Settlement Systems

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21
Q

Reserve Bank has been continuously bringing out a Payment System Vision document for every

A

three years

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22
Q

From _________________ the Reserve Bank has been continuously bringing out a Payment System Vision document for every three years, enlisting the road map for implementation.

A

1998

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23
Q

MICR)

A

Magnetic Ink Character Recognition

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24
Q

The existing cheques were redesigned incorporating a MICR code line which could be read by document processing machines called

A

reader-sorters

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25
Q

reader-sorters. were installed in Mumbai in ————————

A

1986

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26
Q

reader-sorters. were installed in Mumbai followed by Chennai, New Delhi (____________ ) and Calcutta (_________________).

A

1987, 1989

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27
Q

cheque truncation system (CTS) was introduced first in

A

New Delhi in 2008

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28
Q

all the MICR centres have been subsumed into three grid-CTS systems at

A

New Delhi, Chennai and Mumbai

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29
Q

All the three grids are now integrated into single grid National grid for CTS at

A

Chennai.

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30
Q

The Electronic Clearing Service (ECS) was introduced in early

A

1990s,

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31
Q

NACH)

A

National Automated Clearing House

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32
Q

operationalisation of the National Automated Clearing House (NACH) by

A

NPCI

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33
Q

RBI implemented the Next Generation RTGS (NG-RTGS) in 2013 which is built on _____________ standards with advance liquidity management functions, future date functionality, scalability, etc

A

ISO 20022

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34
Q

RTGS has been dedicated to the nation in

A

2013

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35
Q

NEFT functioning on a 24x7x365 basis from _

A

December 16, 2019

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36
Q

RTGS functioning on a 24x7x365 basis from ________________

A

December 14, 2020

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37
Q

National Payments Corporation of India (NPCI), an umbrella organisation for operating retail payments and settlement systems in India established in ———————

A

2008

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38
Q

NPCI was established as an initiative of

A

Reserve Bank of India (RBI) and Indian Banks’ Association (IBA) under the provisions of the Payment and Settlement Systems Act, 2007

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39
Q

NPCI, has been incorporated as a “Not for Profit” Company under the provisions of

A

Section 25 of Companies Act 1956 (now Section 8 of Companies Act 2013)

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40
Q

FMI)

A

Financial Market Infrastructure

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41
Q

CSD

A

Central Securities Depositories

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42
Q

SSS

A

Securities Settlement Systems

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43
Q

CCP

A

Central Counter Parties

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44
Q

TR

A

Trade Repositories

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45
Q

The term FMI generally refers to

A

systemically important payment systems, Central Securities Depositories (CSDs), Securities Settlement Systems (SSSs), Central Counter Parties (CCPs), and Trade Repositories (TRs) that facilitate the clearing, settlement, and recording of financial transactions.

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46
Q

CPSS)

A

Committee on Payment and Settlement Systems

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47
Q

IOSCO)

A

International Organization of Securities Commissions

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48
Q

_____________ have issued a comprehensive set of 24 principles titled “Principles for Financial Market Infrastructure” (PFMI)

A

the Committee on Payment and Settlement Systems (CPSS) and International Organization of Securities Commissions (IOSCO)

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49
Q

comprehensive set of 24 principles titled “Principles for Financial Market Infrastructure” (PFMI) published in

A

April 2012

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50
Q

“Principles for Financial Market Infrastructure” was issued to address ____

A

FMIs can be sources of financial shocks or a major channel through which these shocks are transmitted across financial markets

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51
Q

MNSB)

A

Multilateral Net Settlement Batch

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52
Q

RTGS system also settles Multilateral Net Settlement Batch (MNSB) files emanating from other ancillary payment systems including the systems operated by the

A

Clearing Corporation of India Limited and National Payment Corporation of India.

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53
Q

RBI implemented the Next Generation RTGS (NG-RTGS) in 2013 which is built on ____________ standards with advance liquidity management functions, future date functionality, scalability, etc

A

ISO20022

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54
Q

FCRA)

A

Foreign Contribution (Regulation) Act

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55
Q

security features of the RTGS have been upgraded in terms of better user management control and compatibility with latest digital certificates issued by the certifying authority, viz.,

A

Institute for Development & Research in Banking Technology (IDRBT)

56
Q

_____________ manages and operates the Securities Settlement Systems for the Government securities, both for outright and repo transactions conducted in the secondary market.

A

The Public Debt Office (PDO) of the RBI,

57
Q

Government securities (outright) are settled using DVP model 3 mechanism on a

A

T+1 basis

58
Q

Repos are settled on

A

T+0 or T+1 basis

59
Q

_________ acts as depository for dematerialized government securities.

A

Public Debt Office (PDO) of the RBI

60
Q

securities settlement system has been migrated to the

A

CBS platform

61
Q

CBS)

A

Core Banking Solution

62
Q

CCP)

A

Central Counterparty

63
Q

CCIL is a Central Counterparty (CCP) which was set up in

A

April 2001.

64
Q

_________________ to provide clearing and settlement for transactions in Government securities, foreign exchange and money markets in the country.

A

CCIL

65
Q

CCIL acts as a central counterparty in various segments of the financial markets regulated by the RBI, viz.

A

the government securities segment, USD-INR and forex forward segments

66
Q

CCIL provides non-guaranteed settlement in the rupee denominated interest rate derivatives like

A

Interest Rate Swaps/Forward Rate Agreement market

67
Q

CCIL provides non-guaranteed settlement of cross currency trades to banks in India through

A

Continuous Linked Settlement (CLS) bank by acting as a third-party member of a CLS Bank settlement member

68
Q

CLS

A

Continuous Linked Settlement

69
Q

CCIL also acts as a Trade Repository (TR) for

A

OTC interest rate and forex derivative transactions.

70
Q

ECCS)

A

Express Cheque Clearing System (ECCS)

71
Q

However, from ___________ , all the non-CTS clearing houses (ECCS centres) have been migrated to CTS.

A

September 2020

72
Q

dipped card

A

(Chip based card

73
Q

tapped card

A

(Contactless Near Field Communication {NFC} Card)

74
Q

swiped card

A

(Magnetic-Stripe card)

75
Q

AFA

A

Additional Factor Authentication

76
Q

Positive Pay System has been introduced wherein it mandates that banks re-confirm key details for high-value cheques ______________ from the issuer before clearing them.

A

(₹50,000 and above)

77
Q

The NACH system provides a robust, secure and scalable platform to the participants with both transaction and file-based transaction processing capabilities, which is available on all days of the week, effective

A

August 1, 2021

78
Q

NFS

A

National Financial Switch

79
Q

_____________ connects all ATMs all over the country for card transactions.

A

National Financial Switch (NFS) which was taken over by NPCI from IDRBT in 2009

80
Q

DFS),

A

Discover Financial Service

81
Q

JCB)

A

Japan Credit Bureau

82
Q

CUPI)

A

China UnionPay International

83
Q

NPCI has also tied up with international card schemes like

A

Discover Financial Service (DFS), Japan Credit Bureau (JCB) and China UnionPay International (CUPI)

84
Q

The Immediate Payment System (IMPS) operated by

A

NPCI

85
Q

MMID

A

Mobile Money Identifier)

86
Q

NPCI have launched their own UPI based app called

A

Bharat Interface for Money (BHIM).

87
Q

NETC)

A

National Electronic Toll Collection

88
Q

FASTag is a device that employs __________ technology for making toll payments directly while the vehicle is in motion

A

Radio Frequency Identification (RFID)

89
Q

_______________ have developed the interoperable, Bharat QR Code.

A

MasterCard, VISA and NPCI

90
Q

AePS)

A

Aadhar enabled Payment System

91
Q

AePS is a bank led model which allows online interoperable financial inclusion transactions (cash deposit, cash withdrawal, intrabank or interbank fund transfer, balance enquiry and get a mini statement) at ______________- of any bank using the Aadhaar authentication.

A

Micro ATMs through the Business correspondent

92
Q

NUUP)

A

National Unified USSD Platform

93
Q

USSD- number

A

*99#

94
Q

APB)

A

Aadhaar Payment Bridge

95
Q

USSD

A

Unstructured Supplementary Service Data

96
Q

NACH’s APB system, developed by NPCI has been helping in making

A

Direct Benefit Transfer scheme by Government and Government Agencies

97
Q

NCMC)

A

National Common Mobility Card

98
Q

National Common Mobility Card (NCMC), is an inter-operable transport card conceived by

A

Ministry of Housing and Urban Affairs of the Government of India

99
Q

NCMC launched in

A

4th March 2019

100
Q

NCMC), is enabled through the

A

RuPay card mechanism

101
Q

The NCMC card, which is powered by

A

qSPARC (Quick Specification for Payment Application of RuPay Chip)

102
Q

__________________ is a Dual Interface Open loop payment specification, with the option of loading multiple payment applications on a single card.

A

qSPARC

103
Q

NIPL)

A

NPCI International Payments Limited

104
Q

NPCI International Payments Limited (NIPL) was incorporated on

A

April 3, 2020

105
Q

BBPS)

A

Bharat Bill Payment System

106
Q

BBPCU)

A

Bharat Bill Payment Central Unit

107
Q

BBPOUs)

A

Bharat Bill Payment Operating Units

108
Q

__________________ is the authorized BBPCU

A

NPCI Bharat BillPay Ltd. (NBBL), a subsidiary of NPCI

109
Q

ODR)

A

Online Dispute Resolution (

110
Q

TReDS)

A

Trade Receivables Discounting System

111
Q

The objective of the TReDS is to facilitate

A

financing of invoices / bills of MSMEs drawn on corporate buyers by way of discounting.

112
Q

“fourth participant” on TReDS,

A

insurance companies apart from the MSME sellers, buyers and financiers

113
Q

PAs)

A

Payment Aggregators

114
Q

PA-CB

A

Payment Aggregator-Cross Border

115
Q

PGs)

A

Payment Gateways

116
Q

Perpetual Validity for Certificate of Authorisation (CoA) issued to

A

payment system operators (PSOs)

117
Q

Reserve Bank of India has allowed, with effect from ______________ direct access to CPSs to the non-bank entities subject to certain conditions

A

July 28, 2021,

118
Q

CPS

A

Centralised Payment Systems

119
Q

CISO)

A

Chief Information Security Officer

120
Q

For transactions reported within ___________ days, the customer’s maximum liability is set at zero.

A

three

121
Q

If reported between___________________ days, the liability increases but remains capped.

A

four to seven

122
Q

Beyond _________________________ days, the liability is determined based on the issuer’s board-approved policy

A

seven

123
Q

The framework for processing of e-mandates for recurring transactions was introduced in

A

August 2019

124
Q

The limits for execution of e-mandates without Additional Factor of Authentication (AFA) has been set as

A

₹1,00,000/- per transaction

125
Q

The limits for execution of e-mandates without Additional Factor of Authentication (AFA) has been set as ₹1,00,000/- per transaction for

A

(a) subscription to mutual funds, (b) payment of insurance premiums, and (c) credit card bill payments.

126
Q

The limits for execution of e-mandates without Additional Factor of Authentication (AFA) has been set as ₹1,00,000/- per transaction for the following categories with effect from

A

December 12, 2023

127
Q

DPI)

A

Digital Payments Index

128
Q

RBI-DPI comprises of 5 broad parameters

A

(i) Payment Enablers (weight 25%), (ii) Payment Infrastructure – Demand-side factors (10%), (iii) Payment Infrastructure – Supply-side factors (15%), (iv) Payment Performance (45%) and (v) Consumer Centricity (5%).

129
Q

The RBI-DPI has been constructed with _______________________ as the base period,

A

March 2018

130
Q

RBI-DPI is being published on the Bank’s website on a

A

semi-annual basis.

131
Q

PIDF)

A

Payments Infrastructure Development Fund (PIDF) scheme

132
Q

The Payments Infrastructure Development Fund (PIDF) scheme – The scheme launched in

A

January 2021 (and last extended up to December 31, 2025)

133
Q

The Payments Infrastructure Development Fund (PIDF) scheme The scheme offers financial aid for: Point-of-sale terminals, other payment acceptance infrastructure, Soundbox devices, and Aadhaar-enabled biometric devices. The subsidy amount varies from

A

60% to 90%.

134
Q

ODR

A

Online Dispute Resolution

135
Q

These guidelines mandate that PSOs implement ODR mechanisms that is transparent, rule-based, system-driven, user-friendly and unbiased mechanism for resolving customer disputes and grievances, with zero or minimal manual intervention, with effect from

A

January 01, 2021

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