Which one of the following links all the ATMs in India ?
- A.Indian Banks' Association
- B.National Securities Depository Limited
- C.National Payments Corporation of India
- D.Reserve Bank of India
Correct answer
Explanation
The correct answer is C, National Payments Corporation of India. 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. It was set up by the Institute for Development and Research in Banking Technology (IDRBT) and handed over to NPCI in December 2009. NPCI itself was set up in 2008 under the guidance of the RBI and the Indian Banks' Association as an umbrella body for retail payments. Besides NFS it runs RuPay, IMPS, UPI, AePS, NACH and FASTag (NETC).
A is wrong: the Indian Banks' Association is a representative body of bank managements and does not operate any ATM network.
B is wrong: NSDL is a securities depository that holds shares in electronic form; it has nothing to do with ATMs.
D is wrong: the RBI regulates payment systems but does not run the ATM switch itself.
Exam tip: NFS (ATM network) = NPCI; NPCI also runs RuPay, UPI and IMPS.
Practice Questions
View allConsider 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
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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.
Read the full explanation →Consider 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
Show answer
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
Show answer
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 →