Payment and Settlement Systems

Question 1

…………………………………is the highest policy making body on payment systems in RBI

Answer 1

The Board for Regulation and Supervision of Payment and Settlement Systems (BPSS), a committee of the Central Board of RBI

Question 2

Electronic Clearing Service (Credit) and Electronic Clearing Service (Debit), run by Reserve Bank, have been replaced with ……………………………………………………………run by National Payments Corporation of India (NPCI).

Answer 2

National Automated Clearing House

Question 3

NACH was formed to consolidate multiple ……………………………………………………………. running across the country into one centralised system.

Answer 3

Electronic Clearing Service Systems (ECSS)

Question 4

In November 2005, a more secure system was introduced for facilitating one-to-one funds transfer requirements of individuals / corporates. What is that system?

Answer 4

NEFT

Question 5

RTGS is a funds transfer systems where transfer of money takes place from one bank to another on a “………….” and on “……” basis

Answer 5

real time, gross

Question 6

“…………………………………….” means the transaction is settled on one to one basis without bunching or netting with any other transaction

Answer 6

Gross settlement

Question 7

. …………………………………….system was introduced (to restrict physical movement of cheques and enable use of images for payment processing)

Answer 7

Cheque truncation (CTS)

Question 8

…………………… system for Cheque Truncation has been implemented from January 1, 2021 for increased security of high value cheques

Answer 8

Positive Pay

Question 9

Customers are eligible for …….. free transactions in a month from their own bank ATM.

Answer 9

5

Question 10

Customers are also eligible for free transactions in other banks ATMs viz., ….. transactions in metros and ……. in non-metros.

Answer 10

3 and 5

Question 11

Whether White Label ATM Operator’s are permitted to directly participate in RTGS?

Answer 11

Yes, Since July 2021

Question 12

The Clearing Corporation plays the crucial role of a ………………………………………… in the government securities, USD–INR forex exchange (both spot and forward segments) and Triparty Repo markets.

Answer 12

Central Counter Party (CCP)

Question 13

CCIL plays the role of a central counterparty whereby, the contract between buyer and seller gets replaced by two new contracts - between CCIL and each of the two parties. This process is known as ‘………………….’

Answer 13

Novation, Through novation, the counterparty credit risk between the buyer and seller is eliminated with CCIL subsuming all counterparty and credit risks.

Question 14

Legal Entity Identifier India Ltd., is a wholly owned subsidiary of ……….

Answer 14

CCIL

Question 15

CCIL is granted the status of a …………………………………….

Answer 15

Qualified Central Counterparty (QCCP) by RBI

Question 16

…………………………………………………………..issued by the Committee on Payment and Settlement Systems (CPSS) and International Organisation of Securities Commissions (IOSCO).

Answer 16

Principles for Financial Market Infrastructures (PFMIs)

Question 17

……………………………………………………………………is a scheme for setting up and operating institutional mechanism for facilitating the financing of trade receivables of MSMEs from corporate and other buyers, including Government Departments and Public Sector Undertakings (PSUs), through multiple financiers.

Answer 17

Trade Receivables Discounting System (TReDS)

Question 18

The transactions processed under TReDS are ‘……………………………’ to the MSMEs

Answer 18

without recourse (no liability on MSME in case of default)

Question 19

………………………………………… are entities that facilitate e-commerce sites and merchants to accept various payment instruments from the customers for completion of their payment obligations without the need for merchants to create a separate payment integration system of their own.

Answer 19

Payment Aggregators (PAs)

Question 20

……………………………………… are entities that provide technology infrastructure to route and facilitate processing of an online payment transaction without any involvement in handling of funds.

Answer 20

Payment Gateways

Question 21

An ……………………………….. means a transaction which does not require internet or telecom connectivity to take effect.

Answer 21

offline payment

Question 22

UPI ……………. is an instant payment system for feature phone (Non Smart Phone) users who can use Unified Payments Interface (UPI) payment service in a safe and secure manner.

Answer 22

123PAY

Question 23

………………………… is an automated 24x7 response system that helps customers in addressing their queries related to debit and credit cards, UPI, NEFT, RTGS, IMPS, PPI wallets, ATM, and mobile and net banking, among others.

Answer 23

DigiSaathi

Question 24

The ……………………………. of RBI serves as the Secretariat to the BPSS and executes its directions

Answer 24

Department of Payment and Settlement Systems (DPSS)

Question 25

About Positive Pay system

Answer 25

Banks have been advised to enable PPS facility for all account holders issuing cheques for amount of ₹ 50,000 and above. While availing of this facility is at the discretion of the account holder, banks may consider making it mandatory in case of cheques for amounts of ₹ 5,00,000 and above.

Question 26

To address the customer service issues arising out of failed ATM transactions where the customer’s account gets debited without actual disbursal of cash, the Reserve Bank has mandated re-crediting of such failed transactions within ………………….. days and mandated compensation for delays beyond the stipulated period.

Answer 26

five working days

Question 27

USSD full form

Answer 27

Unstructured Supplementary Service Data