Consider the following statements : 1. National Payments Corporation of India (NPCI) helps in promoting the financial inclusion in the country. 2. NPCI has launched RuPay, a card payment scheme. Which of the statements given above is/are correct ?
- A.1 only
- B.2 only
- C.Both 1 and 2
- D.Neither 1 nor 2
Correct answer
Explanation
The correct answer is C, Both 1 and 2. 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. It is a not-for-profit company owned by banks. Its systems, such as the Immediate Payment Service, the Aadhaar Enabled Payment System, the National Automated Clearing House and the Unified Payments Interface, let even small account holders in villages send and receive money cheaply, which is why it is counted as a key promoter of financial inclusion. So statement 1 is correct. In 2012 NPCI launched RuPay, India's own card payment network, as a domestic alternative to international networks; RuPay debit cards were issued to account holders under the Pradhan Mantri Jan Dhan Yojana. So statement 2 is correct. Option A is wrong because statement 2 is also true. Option B is wrong because statement 1 is also true. Option D is wrong because both statements are true. Exam tip: NPCI, set up 2008 by RBI and IBA, runs RuPay, UPI, IMPS and AePS.
Practice Questions
View allConsider the following statements about the Non-Banking Financial Companies (NBFCs) in India : 1. NBFCs cannot accept demand deposits. 2. All the NBFCs operating in India have to be registered with the RBI. 3. NBFCs form part of the payment and settlement system and can issue cheque drawn on itself. 4. Deposit insurance facility of Deposit Insurance and Credit Guarantee Corporation (DICGC) is not available to the depositors of deposit taking NBFCs. Which of the statements given above is/are correct ?
- A.1 and 4
- B.1, 2 and 3
- C.4 only
- D.2, 3 and 4
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These are two of the three ways the RBI itself says an NBFC differs from a bank. An NBFC lends and invests like a bank, but it cannot accept demand deposits such as savings or current accounts, so statement 1 is correct.
Read the full explanation →Which of the following is not included in the assets of a commercial bank in India?
- A.Advances
- B.Deposits
- C.Investments
- D.Money at call and short notice
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Deposits are money the bank owes to its customers, so they sit on the liabilities side of its balance sheet.
Read the full explanation →Which one of the following is considered as an agency function of commercial banks in India ?
- A.Acceptance of deposits
- B.Investment of surplus funds
- C.Acceptance of income tax payments
- D.Providing overdraft facilities
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When a bank collects tax, it acts as an agent on behalf of its customer and the government, which is an agency function.
Read the full explanation →With reference to Central Bank digital currencies, consider the following statements: 1. It is possible to make payments in a digital currency without using US dollar or SWIFT system. 2. A digital currency can be distributed with a condition programmed into it such as a time-frame for spending it. Which of the statements given above is/are correct?
- A.1 only
- B.2 only
- C.Both 1 and 2
- D.Neither 1 nor 2
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A central bank digital currency can settle payments directly between countries without the dollar or SWIFT, and it can be programmed with conditions on its use.
Read the full explanation →The Service Area Approach was implemented under the purview of
- A.Integrated Rural Development Programme
- B.Lead Bank Scheme
- C.Mahatma Gandhi National Rural Employment Guarantee Scheme
- D.National Skill Development Mission
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The Service Area Approach, introduced by the RBI in 1989, worked within the framework of the Lead Bank Scheme to plan rural credit village by village.
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