IMPS
What does the acronym IMPS stand for and what is its primary purpose?
Immediate Payment Service; real-time interbank electronic fund transfer service
What does RTGS stand for and for what kinds of transactions is it primarily used?
Real Time Gross Settlement; used for high-value, time-critical transfers with individual real-time settlement.
State one key difference between a debit card and a credit card in how funds are accessed
Debit card withdraws funds directly from the user’s bank account; credit card accesses a line of credit to be repaid later.
Give a concise definition of mobile banking.
Banking services (balance, transfers, payments) accessible through a mobile phone app or SMS.
Define digital banking and give two examples of digital payment systems
Digital banking: delivery of banking services via digital channels (internet, mobile apps). Examples: UPI, e-wallets like Paytm/PhonePe
Name two key characteristics of IMPS that make it useful for person-to-person transfers.
Available 24/7; near-instant credit to beneficiary; accessible via mobile/online banking
State the minimum transaction value requirement (conceptually) that differentiates RTGS from other systems like NEFT and IMPS
₹2,00,000
Name two typical advantages of using a debit card over a credit card for everyday purchases
Advantages of debit: avoids debt/interest; immediate deduction helps budget control; lower fees.
List two common mobile banking services related to payments and transfers.
Fund transfers (P2P), bill payments, mobile top-ups, and QR/UPI payments.
Briefly explain what a Unified Payments Interface (UPI) enables for users. UPI stands for Unified Payments Interface.
It is an instant, real-time payment system developed by the National Payments Corporation of India (NPCI) that allows users to send and receive money directly between bank accounts using a mobile app. It streamlines transactions by replacing complex bank details with a simple unique identifier, such as a phone number or QR code. A unique identifier (e.g., name@bank) allows users to send/receive money without sharing account numbers or IFSC codes.
Explain the difference between IMPS and NEFT in terms of transaction timing.
IMPS is real-time/instant; NEFT processes in hourly/batched settlements
Explain how settlement in RTGS differs from batch settlement systems
RTGS settles each transaction individually and immediately on receipt (gross settlement), not in batches.
Describe two risks or disadvantages of using credit cards when cardholder discipline is poor.
Credit card risks: high interest on unpaid balances; potential to accumulate debt; fees and negative credit reporting if misused.
Explain what an SMS alert is in mobile banking and how it supports account security.
SMS alert: automated texts notifying account activity (debits/credits), supporting fraud detection and balance tracking
Explain what an e-wallet is and list two advantages and two disadvantages of using e-wallets for daily payments
E-wallet: stored-value application for payments. Advantages: convenience, speed, offline/QR payments; Disadvantages: limited acceptance, need to preload funds, potential security/single-point risk.
Describe a security control commonly used in IMPS transactions to authenticate senders.
Two-factor authentication: OTP plus transaction PIN/MPIN or device-based tokenization
Describe one advantage and one disadvantage of using RTGS for cross-bank large payments.
Advantage: immediate finality for large payments; Disadvantage: higher fees, final and irrevokable
Which allows credit facility
Credit card
What is tele-banking?
Telebanking, or telephone banking, is a service enabling customers to conduct financial transactions and manage accounts over the phone, either via automated systems or live agents. It alos allows to check balances.
What are Pre-paid cards
Gift cards or reloadable cards
A small business needs to send urgent refunds to many customers at odd hours; explain why IMPS might be preferred and identify one limitation for large-value transfers.
Preferred for urgent, low-to-medium value instant refunds; limitation: not ideal for very large-value transfers due to preset limits.
One major constraint for sender and receiver in RTGS is?
RTGS enabled branch
A consumer is evaluating purchase methods for a costly electronic item. Compare the buyer protections and financial implications of paying with a debit card versus a credit card.
Debit: immediate payment, limited consumer protection, risk of tying up funds and limited chargeback; Credit: purchase protections (dispute/chargeback), delayed payment, interest if unpaid—better for big purchases when used responsibly.
Under what facility you become the customer of Bank and not customer of Branch
CBS
Give any two disadvantages of using Online payments
-Privacy, security, systrm glitches etc.