Test: E-Banking - 2 - Banking Exams MCQ

RTGS is a funds transfer system where money is moved from one bank to another in ‘real-time’ and on a gross basis. It is not subjected to a waiting period. It was introduced by RBI in 2004. The system is available on all days on a 24x7x365 basis. The RTGS system is primarily meant for large value transactions.

• UPI transaction limit is Rs. 1 lakh per transaction. This limit has been set by NPCI, the RBI-regulated entity that built UPI.
• The UPI transaction limit per day has been defined by each bank in the UPI network and varies from bank to bank since NPCI has not issued any regulation for that. For example in SBI UPI transaction limit per day is Rs. 1,00,000, while in Bank of Baroda UPI transaction limit is Rs. 50,000.
• UPI transaction limit can be categorized as
  • UPI transaction amount limits i.e the maximum amount of money that can be transferred via UPI.
  • Frequency i.e number of UPI transactions a person can do in a day.

Cards are increasingly being used in place of actual cash. Plastic money refers to these cards. Debit and credit cards represent plastic money. Plastic money has made it easier for us to carry out transactions in our daily lives.

• The Aadhaar Enable Payment System (AEPS) is a fund transfer mechanism that uses the UIDAI identification for the transaction. 
• It functions if your Aadhaar Number is linked to your bank account and UIDAI Authentication is possible. 
• The maximum amount that can be transferred per account per day is Rs 50000. 
• Customers can get services such as withdrawal of funds and deposition of cash in their accounts. 

Standing Instructions are payment orders/instructions that are set up by Bank customers to ensure that payments are transferred regularly on a certain date and a method of debiting your Operative account to make an automatic payment of a predetermined sum at regular times.

Aadhaar Enabled Payment System (AePS) is a system developed by the National Payments Corporation of India (NPCI) that allows people to carry out financial transactions on a Micro-ATM by furnishing just their Aadhaar number and verifying it with the help of their fingerprint/iris scan.
Adhar Enabled Payment System provides the following services.

• Cash Deposit
• Balance Enquiry
• Aadhaar to Aadhaar Fund Transfer
• Mini Statement
• Best Finger Detection
• Adhar

Benefits of AePS
There are a number of benefits of AePS. Some of those are mentioned below:

• Banking, as well as non-banking transactions, can be performed through a banking correspondent.
• Banking correspondents of one bank can perform transactions of other banks as well.
• People do not have to furnish their debit/credit card for making transactions through AePS.
• The fingerprint is needed for transaction authentication which makes it safer.
• Micro PoS machines can be taken to distant places enabling people in remote villages to make transactions instantly.

NPCI has ten core promoter banks—State Bank of India, Punjab National Bank, Bank of Baroda, Canara Bank, Bank of India, Union Bank of India, HDFC Bank, Citibank, HSBC, and ICICI Bank.

• UPI or Unified Payments Interface is an immediate real-time payment system that helps in instantly transferring the funds between the two bank accounts through a mobile platform.
• This idea was launched by the National Payments Corporation of India on 11th April, 2016.
• Some of the interesting features of UPI are as follows:
• Instant transfer of fund through Immediate Payment Service (IMPS) which is faster than NEFT.
  • Since it is completely digital, one can use UPI 24 hours and on all public holidays.
  • Single mobile application for accessing various bank accounts. 
  • Uses Virtual Payment Address which is a unique ID as given by the bank.
  • Uses Account Number with IFS Code and Mobile Number with MMID or Mobile Money Identifier. 
  • MPIN or Mobile Banking Personal Identification number is required to confirm each payment. 
  • Also available on USSD service where users can use the service just by dialing *99# and choose the services like fund transfer, send money, request money, non-financial services, balance Enquiry, change MPIN etc. (Service charge of Rs. 0.50 is applicable)
  • Every bank provides its own UPI for different platforms of Android, Windows, and IOS. The banks may or may not charge for the UPI service.
  • Bill Sharing facility.
  • Best for doing merchant payment, utility bill payments, in-app payments, OTC payments, Barcode based payments. 
  • One can file a complaint from Mobile App directly.

The brand under the new entity - Bharat BillPay - offers various recurring payment services to customers, including bill payments for electricity, telecom, DTH, Gas, Education fees, water, and municipal taxes, NETC FASTag recharge, Loan repayments, Insurance, Cable, Housing Society, Subscription Fees, Hospital, Credit card, Clubs and association, etc.

• BHIM stands for Bharat Interface for Money.
• It is a payment app that lets you make simple, easy, and quick transactions using Unified Payments Interface (UPI).
• You can make direct bank payments to anyone on UPI using their UPI ID or scanning their QR with the BHIM app.
• It was developed by the National Payments Corporation of India (NPCI).
• It was launched by the Hon'ble Prime Minister of India, Narendra Modi on 30th December 2016 to bring Financial Inclusion to the nation and a digitally empowered society.