Banking for IBPS 2015: Objective Questions on Banking Functions and Business-5


Which is the first credit card facility to be recognised worldwide?
[A]Visa card
[B]Maestro card
[D]Diner Card

Visa card
In 1977, Visa was adopted internationally and became the first credit card facility to be recognised worldwide. It is a conditional authorization given by a competent authority of a country for a person who is not a citizen of that country to enter its territory and to remain there for limited duration.


With reference to the prepaid credit cards, which among the following is / are correct statements?
1. credit facility is offered for the purchaser of the card
2. no interest charged from the purchaser of the card
3. no purchasing fee and monthly fees charged before an arbitrary time period
Select the correct option from the codes given below:
[A]Only 1 & 2
[B]Only 2 & 3
[C]Only 1 & 3
[D]1, 2 & 3

Only 2 & 3
The Prepaid cards require the cardholder to load money onto the card before the card can be used. Purchases are withdrawn from the card’s balance. The spending limit does not renew until more money is loaded onto the card. Some points in context of prepaid cards:

  1. No credit facility is offered for the purchaser of the card.
  2. No interest charged from the purchaser of the card.
  3. Purchasing fee and monthly fees charged after an arbitrary time period.
  4. Can be issued to minors since there is no credit line involved.


What does the cirrus logo on ATM / debit cards signifies__?
[A]have cash access facility anywhere in India only
[B]have cash access facility outside the India only
[C]have cash access facility in or outside the India
[D]have cash access facility in and outside the India

have cash access facility in and outside India
The Cirrus is one of the logos found on the ATM or debit card and provides the card owner worldwide cash access facility . The Cirrus ATM network gives immediate access to the card owner’s funds available in the local currency when travelling abroad. Cirrus logo provides cash access facility in and outside the India .


The Secured credit cards are generally available to the person with __:
[A]Strong credit history
[B]Poor Credit History
[C]High Net worth Income
[D]Government Job

Poor Credit History
The Secured credit cards are an option to allow a person with a poor credit history or no credit history to have a credit card which might not otherwise be available. These cards require a security deposit to be placed on the card. The credit limit on a secured credit card is typically equal to the deposit made on the card, but it could be more in some cases. These cards are available with both Visa and MasterCard logos on them.


What is the time period during which no interest is charged on a credit card?
[A]Grace period
[B]Term period
[C]Loan period
[D]Sanction Period

Grace period
A credit card’s grace period is the time the customer has to pay the balance before interest is charged to the balance. Grace periods vary, but usually range from 20 to 30 days depending on the type of credit card and the issuing bank. If a customer is late paying the balance, finance charges will be calculated and the grace period does not apply.


Which international standard governs Credit Card numbers?
[A]ISO/IEC 7810
[B]ISO/IEC 7812
[C]ISO/IEC 7815
[D]ISO/IEC 7820

ISO/IEC 7812
The Credit Card numbers are governed by the ISO/IEC 7812 which is a numbering system for the identification of issuers of cards that require an issuer identification number (IIN) to operate in international, inter-industry and/or intra-industry interchange.


With reference to the Credit Card number, which digits identify the Credit Card Network?
[A]Initial two
[B]Initial Four
[C]Last two
[D]Last four

Initial two
The Length of the number is from 14 to 19. The first 6 digits are known as the Issuer Identification Number (IIN). Out of them, the first 2 or more digits identify the Card network. For example- The card number that begins with 34, 35, 36 or 37 is an American Express Card; another which begins with 51,52,53,54 or 55 is a MasterCard and the number which becomes with 4 is a Visa card.


In terms of Credit Cards, what is a Hot Card?
[A]Newly issued Card
[B]Invalid Card
[C]Stolen Card
[D]Unpaid Card

Stolen Card
A hot card is a lost or stolen card. A hot list is the list of caution against the use of a credit card by a defaulter holder.


What is the validity period of a Kisan Credit Card?
[A]2 Years
[B]3 Years
[C]5 Years
[D]10 years

3 Years
A Kisan Credit Card is valid for 3 years subject to annual review. As incentive for good performance, credit limits could be enhanced to take care of increase in costs, change in cropping pattern, etc.


What is the accidental death cover available to holders of Kisan Credit Card?
[A]Rs. 50,000
[B]Rs. 100,000
[C]Rs. 150,000
[D]Rs. 200,000

Rs. 50,000
Kisan Credit Card holders are covered by a personal accident insurance. This cover is available when the person enters the scheme. The cover is as follows:

  • Death : Rs. 50,000
  • Disability: Rs. 25000
  • Maximum Age to enter : 70 years