Banking & Financial Awareness GK Questions with Answers – Page 16

The first five Regional Rural Banks were created on 2 October 1975 by an Ordinance, and that Ordinance was replaced the next year by the Regional Rural Banks Act, 1976, which fixes their objects, capital and shareholding.

The National Bank for Agriculture and Rural Development began work in 1982, set up on the recommendation of the Sivaraman Committee, and it is the apex development bank for agriculture and the rural economy, refinancing and supervising both Regional Rural Banks and cooperative banks.

A FASTag is a sticker on the windscreen that a reader at the toll plaza identifies by radio, so the toll is deducted from a linked account and the vehicle need not stop; the system is called National Electronic Toll Collection and is run by the National Payments Corporation of…

The system, run by the National Payments Corporation of India, lets a customer withdraw cash, deposit money or check a balance at a banking correspondent's micro ATM by giving the Aadhaar number, the name of the bank and a biometric authentication, without a card or a cheque.

Real Time Gross Settlement is meant for large value payments, which are settled one transaction at a time as they are received rather than in batches, and the system sets a floor of two lakh rupees with no upper limit.

The amount of a debit card payment leaves the account at once, which is the essential difference from a credit card, where the bank pays first from a limit it has granted and bills the holder later with an interest free period.

Such an operator is authorised under the Payment and Settlement Systems Act of 2007, the machine carries the operator's own brand instead of a bank's, cards of every bank work on it, and the cash is supplied through a sponsor bank.

The machine does the work of a teller at the counter, giving cash, accepting deposits, printing statements and taking requests, and it works at any hour without a member of the staff.

RuPay was launched as an Indian card network so that domestic card payments would be settled within the country instead of through foreign networks, and its cards are issued by banks for savings accounts and under government schemes.

UPI was launched in 2016 and allows a payment from one bank account to another through a mobile application, using a virtual payment address instead of the account number and a UPI PIN for authentication.

YONO, which stands for You Only Need One, was launched by the State Bank of India as a single application for banking, investment, insurance and online shopping, and it also allows cash withdrawal at the bank's machines without a card.

The Bharat Interface for Money application was released in December 2016 by the National Payments Corporation of India so that payments over the Unified Payments Interface, launched earlier that year, could be made from any smartphone with a bank account linked to it.

Muhammad Yunus, an economist from Bangladesh, founded Grameen Bank. He grew it out of a lending experiment begun in the village of Jobra in 1976, and the bank was given formal status by law in 1983.

NACH is the bulk payment system for many credits or debits at once, such as salary, pension, dividend, subsidy and direct benefit transfer on the credit side and loan instalments, insurance premiums and utility bills on the debit side, and it took over the work of the older ECS with…

A FASTag is an RFID sticker on the windscreen which a reader at the toll plaza identifies from a distance, so the toll is debited from the linked account or wallet without the vehicle stopping; the programme is run by NPCI as National Electronic Toll Collection.

Under this Act no person may commence or operate a payment system in India without authorisation from the Reserve Bank, and it created the Board for Regulation and Supervision of Payment and Settlement Systems within the RBI.

BHIM stands for Bharat Interface for Money, and the acronym was chosen in honour of Dr Bhimrao Ramji Ambedkar, the chairman of the drafting committee of the Constitution and a trained economist.

RuPay was launched by NPCI in 2012 so that debit and credit card transactions between Indian cardholders and Indian merchants are authorised and settled within the country instead of being switched abroad, and its name joins Rupee with Payment.

A virtual payment address takes the form of a name followed by a bank handle and acts as a pointer to the underlying account, so a payment can be made or collected without revealing the account number or the branch code.

The Immediate Payment Service, launched in 2010, already moved money between banks instantly at every hour, and UPI uses that rail while adding the virtual payment address, interoperable applications and single click authentication.