Banking & Financial Awareness Previous Year Questions (PYQ) with Answers – Page 4

NPCI runs the National Financial Switch (NFS), the network that connects the ATMs of banks across India. The National Financial Switch lets a customer of one bank withdraw cash or check a balance at another bank's ATM.

The Merchant Discount Rate (MDR) is the fee a bank charges a merchant for processing payments the merchant receives from customers by card.

The consumer protection law recognises six rights, and the three named in the options are among them: the right to safety, that is protection against goods and services hazardous to life and property; the right to choose from a range of goods and services at competitive prices; and the right…

The Banking Ombudsman is a senior officer appointed by the Reserve Bank of India to hear and settle customer complaints about deficiency in banking service.

SWIFT is the international messaging network over which banks send payment and guarantee instructions across borders.

NPCI is the umbrella organisation that runs India's retail payment and settlement systems.

The National Payments Corporation of India was set up in 2008 as the umbrella body for retail payments in the country, on the initiative of the Reserve Bank of India and the Indian Banks' Association, under the Payment and Settlement Systems Act, 2007.

UPI moves money straight from one bank account to another through a phone, so there is no need to load money into a separate wallet first.

SIDBI was set up under the Small Industries Development Bank of India Act, 1989 and began operations in 1990 as the principal financial institution for the promotion, financing and development of micro, small and medium enterprises.

CRISIL, CARE and ICRA are all credit rating agencies registered with SEBI, which regulates such agencies under its Credit Rating Agencies Regulations of 1999.

The RBI brought in MCLR to make banks' loan pricing more transparent and to give borrowers rates that are fair to both sides.

Core Banking Solutions (CBS) links all branches of a bank to one central system, so a customer can bank at any branch, not just the home branch.

The Negotiable Instruments Act was enacted in 1881 and came into force on 1 March 1882.

Section 22 of the Negotiable Instruments Act, 1881 says that the maturity of a promissory note or bill of exchange payable otherwise than on demand is the date on which it falls due, and the three days of grace are already counted in arriving at that date.

NSF stands for not sufficient funds, and a bank writes it on the return memo when the balance in the drawer's account is less than the amount of the cheque.

Section 4 of the Negotiable Instruments Act, 1881 defines a promissory note as an instrument in writing, signed by the maker, containing an unconditional undertaking to pay a certain sum of money to or to the order of a certain person.