47 - Payment Systems
Banking Awareness Multiple Choice Questions (MCQs) and Answers with explanation on Payment Systems for IBPS Bank PO, IBPS Bank Clerical, RRB PO and Clerical, SBI PO and SBI Clerical, IBPS Recruitments, RBI Grade B and RBI Bank
1. What is e-payment?
[A] Electronic payment for buying and selling through the Internet
[B] Payment of online software
[C] Payment of online services
[D] None of the above
Show Answer
Correct Answer: A [Electronic payment for buying and selling through the Internet]
Notes:
The definition of an electronic payment system is a way of paying for a goods or services electronically, instead of using cash or a check, in person or by mail.
2. Which among the following activities are not permitted to payments banks?
[A] Remittance services
[B] Issuing ATM cards
[C] Issuing credit cards
[D] Accepting demand deposits
Show Answer
Correct Answer: C [Issuing credit cards]
Notes:
The payments banks cannot offer credit cards. The permitted activities are accepting demand deposits, issuing ATM cards, providing remittance services and issue pre-paid instruments.
3. What is the maximum amount of loan can be extended by payments banks?
[A] 25000
[B] 50000
[C] 100000
[D] No lending power
Show Answer
Correct Answer: D [No lending power]
Notes:
Payments banks cannot lend. They cannot provide credit facilities.
4. What is the maximum amount of balance can be maintained an individual in payments bank?
[A] 1,50,000
[B] 1,00,000
[C] 50,000
[D] 25,000
Show Answer
Correct Answer: B [1,00,000]
Notes:
Maximum deposit that can be maintained in payments bank is Rs 100000 per individual/business.
5. Which committee mooted the idea of payments banks?
[A] Bimal Jalan Committee
[B] Nachiket Mor Committee
[C] P J Nayak Committee
[D] YV Reddy Committee
Show Answer
Correct Answer: B [Nachiket Mor Committee]
Notes:
he Nachiket Mor committee mooted the idea of payments banks in 2013.
6. What is the minimum capital required to set up payments bank?
[A] Rs 100 crore
[B] Rs 75 crore
[C] Rs 50 crore
[D] Rs 25 crore
Show Answer
Correct Answer: A [Rs 100 crore]
Notes:
The minimum capital required to start payments bank is Rs 100 crore.
7. How much percentage of its funds is required to be invested by payments banks in government securities or T-bills with maturity up to 1 year?
[A] 25%
[B] 40%
[C] 50%
[D] 75%
Show Answer
Correct Answer: D [75%]
Notes:
The payments banks need to invest 75% of its funds in government securities or T-bills with maturity upto 1 year.
8. For first five years how much paid-up equity capital needs to be maintained by promoters in payments bank?
[A] 20%
[B] 30%
[C] 40%
[D] 60%
Show Answer
Correct Answer: C [40%]
Notes:
The promoter’s minimum initial contribution to the paid-up equity capital of payments bank shall at least be 40 per cent for the first five years from the commencement of its business.
9. How many payments banks have actually started operations since RBI has granted the in-principle approval?
Show Answer
Correct Answer: D [6]
Notes:
Six payments that have started operations are Aditya Birla Payments Bank, Airtel Payments Bank, India Post Payments Bank, Fino Payments Bank, Jio Payments Bank, Paytm Payments Bank.
10. How much percentage of its funds can be held by payments banks in current and time deposit with Scheduled Commercial Bank?
[A] 25%
[B] 40%
[C] 50%
[D] 75%
Show Answer
Correct Answer: A [25%]
Notes:
The payments bank can hold maximum 25% in current and time/fixed deposits with other scheduled commercial banks.
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