Test: Developments in Digital Payments - Bank Exams MCQ

The significant drop in data costs since 2016 has improved the accessibility of mobile phones and digital payment platforms, enabling a larger segment of the population to engage in digital transactions.

With the rise of digital transactions, cybersecurity concerns such as data breaches and financial fraud have emerged, posing significant risks to users and businesses alike.

The Unified Payments Interface (UPI) revolutionized digital payments in India by allowing instant, seamless fund transfers between bank accounts through mobile applications.

USSD (Unstructured Supplementary Service Data) enables cashless transactions via mobile phones without requiring an internet connection, making it accessible to a broader audience.

The Aadhaar Enabled Payment System (AEPS) allows banking transactions authenticated through Aadhar, providing a secure method for various banking functions.

Credit Cards are not part of the JAM Trinity; the focus is on Jan Dhan accounts, Aadhar identification, and mobile connectivity to promote financial inclusion.

India represents 46% of all global digital payments, demonstrating its significant role in the digital payment landscape worldwide.

A major challenge for rural areas is the lack of digital literacy, which limits the ability of individuals to effectively and securely use digital payment tools.

Digital payments provide a detailed record of transactions, which facilitates easy tracking and tracing of payments, a significant advantage over traditional methods.

The Unified Payments Interface (UPI) has become the predominant method of digital payments in India, accounting for a substantial 80% of all transactions.

Point of Sale (PoS) terminals are devices used in retail environments to accept payments via debit or credit cards, facilitating easy transactions at physical stores.

The Payment and Settlement Systems Act 2007 is being reviewed by the Reserve Bank of India (RBI) to ensure it aligns with the current digital payment environment.

Government subsidies and benefits encourage the adoption of digital payment methods by transferring welfare benefits directly to beneficiaries' bank accounts.

Embracing a cashless economy promotes greater transparency in financial transactions, which can help reduce illicit fund circulation and enhance accountability.

In 2022, the value of instant digital transactions in India surpassed the combined transactions of the US, UK, Germany, and France by four times, highlighting India's rapid digital payment growth.

UPI 123PAY is designed to facilitate digital payments without the need for a smartphone, making it accessible to a wider audience, including those who may not own advanced devices.

The JAM Trinity (Jan Dhan accounts, Aadhar, and Mobile) aims to enhance financial inclusion by providing banking access to previously unbanked populations, thus facilitating smooth digital transactions.

RBI's Payments Vision 2025 emphasizes integrity and inclusion as part of shaping a robust and sustainable digital payment ecosystem in India.

India recorded over 100 billion digital transactions during the fiscal year of 2023, showcasing an impressive increase in digital transaction activity.

Google Pay is one of the popular mobile wallets in India, allowing users to store money digitally and make various payments conveniently.