Banking Awareness Study Material - Banking Innovation in India

Banking Awareness Study Material – Banking Innovation in India

Contents

Banking Awareness Study Material Computer Awareness Marketing Aptitude

The term “Innovation” means to make something new- The innovations in the banking field mainly depends upon rapid growth in the technology. The banking industry has became one of the developed service sector industries in India. In the last decade, India has seen a shift from traditional payment methods, i.e. cash/paper-based payments to modern electronic payment systems. On one hand innovation has increased the working efficiency of banks whereas on the other hand customers are also at an ease.

Automated Teller Machine
Automated Teller Machine (ATM) is a computerised machine that provides the customers of banks the facility of accessing their account for dispensing cash and to carry out other financial and non-financial transactions without the need to actually visit their bank branch.

The benefit of ATMs for customers

provide 24 x 7 and 365 days a year service.
offer quicker and efficient service.
allow privacy in transactions.
provide error free service.

The benefits of ATM for banks

It is an alternative to extend banking hours.
It is an alternative to opening new branches.
It reduces the operating expenses of the bank.
It helps a banks to avoid transportation of cash and cash handling employees.
It can be located in any convenient location in any form as wall unit, lobby unit or a window unit.
It increases market penetration.
It relieves the bank employees from routine transactions so that they can focus more on analytical and innovative work.

History of ATM in India

First Bank to introduce ATM in India: HSBC, in 1987 (Mumbai).
First non-banking entity to introduce ATM in India: Tata Communications Payment Solutions Limited (Indicash).
ICICI was the first Bank to provide Mobile ATM.
India’s first ‘talking’ ATM launched by Union Bank of India (UBI) for visually impaired was launched in Ahmedabad (Gujarat).
The National Payments Corporation of India (NPCI) launched India’s first rural bank ATM card with a regional rural bank in Varanasi.
India’s first non-bank owned ATM opens in Thane district, Maharashtra by Tata Communication Payments Solutions Ltd.

Types of ATM
Different types of ATM are as follows

White Label ATM: The ATMs setup, owned and operated by non-banks are called White Label ATM’s. Non-banking entities have entered the business of owning ATMs where customers of different banks can withdraw or deposit cash from their respective bank accounts.
Traditionally, Bank ATMs had their respective Bank logo, like SBI ATM and all. But White Label ATM’s do not have this logo, as they are setup by non-banking entities. Tata Communication Payment Solutions (TCPS), launched first white label ATM of the country at Chandrapada (Mumbai).
Brown Label ATM: Brown label ATM are those Automated Teller Machines where hardware and the lease of the ATM machine is owned by a service provider, but cash management and connectivity to banking networks is provided by a sponsor bank whose brand is used on the ATM. The ‘brown label’ has come up as an alternative between bank-owned ATMs and ‘white label’ ATMs.
Online ATMs: These ATMs are connected to the bank’s database at all times and provide real time transactions online. The withdrawal limits and account balances are constantly monitored by the bank.
Offline ATMs: These ATMs are not connected to bank’s database- hence they have a predefined withdrawal limit fixed and customer can withdraw that amount irrespective of the balance in his account. Later on banks may charge some penalty for exceeding balance.
Stand Alone ATM :Stand Alone ATMs are not connected with any ATM network, hence their transactions are restricted to the ATM’s branch and link branches only. The opposite of Stand Alone ATMs are Networked ATMs, which are connected on the ATM Network.
Onsite ATMs: These are ATM machines that are setup in the premises where there is a bank branch so that both the physical branch and the ATM can be used. This is known as being onsite and this can be used for several purposes.
Offsite ATMs :These are the machines that are setup on a stand alone basis. This means that the bank has a place where there is only an ATM machine, then this becomes an offsite ATM. This is done to ensure that the bank reaches out to more geographical areas and that people are able to use its services even when there is no bank branch in the area.

Other Types of ATMs

Worksite ATM: It is located within the premises of an organisation and is generally meant only for the employees of the organisation.
Mobile ATM: It refers to an ATM that moves in various areas for the customers. Few private banks have introduced ATM on wheels.
Green Label ATM: It provided for Agricultural Transaction.
Orange Label ATM: It provided for Share Transactions.
Yellow Label ATM: It provided for E-commerce.
Pink label ATM: It works as women banking.

New Banking Services through ATMs
The Reserve Bank of India allowed banks to extend all their banking products and services on 14th Jan, 2016 through their ATM, provided their technology allows the same. Until now banks could only extend services that were ‘approved’ by the RBI. These included deposits and withdrawals, PIN change, cheque book requisition, statement of account, balance enquiry, fund transfer, bill payments and railway tickets, financial products such as loans, insurance and credit cards. SBI has the largest ATM network of approx 48000 machines followed by ICICI Bank (13000), Axis Bank (12500) and HDFC Bank (12000).

ATM Insurance Policy
Automated teller machine (ATM) card holders of both public and private sector banks are eligible for accidental hospitalisation cover and accidental death cover by the card issuing bank. It ranges between ₹ 50000 to ₹ 10 Lakh. The insurance cannot be availed for inoperative account. It is being claimed that if a person has a bank account and uses an ATM card, he is entitled to accidental insurance extended by the bank without any fee. It is being also claimed that if someone dies within 45 days of using the ATM card, his family can claim the insurance amount.

Allocation of Insurance Amount Depending on Cards Type

If the customer’s card is of VISA type, then insurance amount is up to ₹ 2 lakh.
If the customer’s card is of Platinum type, then insurance amount is up to ₹ 2 lakh.
If the customer have Kisan card or classic card, then insurance amount is up to ₹ 50000.
If the customer have Gold or Master card, then insurance amount is up to ₹ 5 lakh.

Cardless Cash Facility at ATM
Bank offers this new cardless cash facility called “Cash-on-Mobile” which one can get through newly launched mobile banking application. The facility enables to withdraw cash from an ATM without using your ATM/debit card. The service is free of cost. Customers will be able to make intra bank, mobile-to-mobile, mobile-to-account fund transfers and even Net Electronic Funds Transfer (NEFT).
Interbank Mobile Payment Service (IMPS) is a part of this mobile application. Customers can withdraw up to ₹ 5000 per day through cash-on-mobile.

National Financial Switch
The National Financial Switch facilitates routing of ATM transactions through interconnectivity between the Bank’s Switches, thereby enabling the citizens of the country to utilise any ATM of a connected bank. The National Financial Switch was dedicated to the Nation on 27th Aug, 2004. The NFS helps a bank plug in its ATM network to networks of other banks.

Innovation in Fund Transfer Services
Fund transfer services allow customers to make money transfer at their comfort using integrated banking tools. Following are the innovations in fund transfer services

Cash Deposit Machines
The Cash Deposit Machine, better known as CDM is an ATM like machine that allows you to deposit cash directly into your account using the ATM cum debit card. You can use this machine to instantly credit your account without visiting the branch. The transaction receipt also gives you your updated account balance.
Some of the salient features of this product are

Instant credit of cash deposit into your own account.
Quick and convenient way to deposit cash.
Paperless transaction.
The per transaction limit is ₹ 49900.
Upto 200 currency notes can be deposited in a single transaction.
The CDM only accepts denominations ₹ 100, ₹ 500 and ₹ 2000.

Other Services Available on the CDM .

PIN change Use this service to change your password at regular intervals.
Balance Enquiry Use this service to check the current available balance in your account. This service is available on the main option screen after swiping your card. You can also ‘Go Green’ by selecting the view option as the balance is displayed on the screen else get a transaction receipt by selecting print.
Mini Statement of Account Keep track of the transactions in your account by availing this service. Mini statement gives you an insight into the last 10 transactions in your account.

Instant Money Transfer Facility
IMT facility is a unique payment system launched in India by Empays Payment Systems, which is authorised by the Reserve Bank to enable a payment to be made to a mobile phone from a bank account. There is no requirement for the beneficiary to have a bank account. The receiver can obtain the funds immediately from any IMT enabled ATM.
The country’s largest lender, State Bank of India (SBI), will allow customers to withdraw funds from its ATM without a debit card and transfer up to ₹ 10000 using a mobile phone. By launching the instant money transfer (IMT) payment system on its ATMs, the state-owned lender has enabled customers a payment up to ₹ 10000 to be made from any SBI bank account to a person using just his/her mobile number as the identifier.

Immediate Payment Service
Immediate Payment Service (IMPS)is an instant interbank electronic fund transfer service through mobile phones available 24 x 7, throughout the year including Sundays and any bank holiday.
Customers can transfer and receive funds via IMPS using their registered mobile number and Mobile Money Identifier (MMID) or Account number and IFSCcode. This facility is provided by NPCI through its existing NFS switch. The participants for IMPS will be as follows: Remitter (Sender), Beneficiary (Receiver), Banks and National Financial Switch — NPCI.

Objectives of IMPS

To enable bank customers to use mobile instruments as a channel far accessing their banks accounts and remit funds.
To subserve the goal of Reserve Bank of India (RBI) in electronification of retail payments.
To facilitate mobile payment systems already introduced in India with the Reserve Bank of India Mobile Payment Guidelines 2008 to be inter-operable across banks and mobile operators in a safe and secured manner.

Mobile Money Identifier Digit
Mobile Money Identifier Digit (MMID) is a seven-digit number, issued by banks for effecting financial transactions through the user’s mobile phone. The user’s mobile number MMID are uniquely linked with his bank account number, and is one of the key inputs to facilitate fund transfer. Both the remitter and the beneficiary are required to have their MMlDs to effect a fund transfer through the mobile phone. A unique MMID and mobile number combination help in identifying the beneficiary’s details. Multiple MMIDs can be linked to same mobile number.

Bank Card
A Bank Card is typically a plastic card issued by a bank to its clients that performs one or more of a number of services that relate to giving the client access to funds, either from the client’s own bank account, or through a credit account. Cards can be classified on the basis of their issuance, usage and payment by the card holder.

Types of Card
There are several different types of cards issued by the banks which allows you to access your money. Current accounts usually include the option of an ATM card and often a debit card. Most banks offer both ATM and debit facilities on the one card. The debit card has been around since 1966, which means banks have had a lot of time to figure out new ways to charge you for using your own money. Below are the different Payment cards and their features of each type of card for better understanding

Credit Card
A feature of a credit card is that the issuer of the card creates a line of credits (usually called a credit limit) for the cardholder on which the cardholder can draw (i.e. borrow) for payment to a merchant in making a purchase or as a cash advance to the cardholder. Most credit cards are issued by or through local banks or credit unions, but some non-bank financial institutions also offer cards directly to the public.
The credit cards are used for purchase of goods and services at Point of Sale (POS) and E-commerce (online purchase)/ through Interactive Voice Response (IVR)/Recurring transactions/ Mail Order Telephone Order (MOTO). These cards can be used domestically and internationally (provided it is enabled for international use). The credit cards can be used to withdraw cash from an ATM and for transferring funds to bank accounts, debit cards, credit cards and prepaid cards within the country.

Tit-Bits

In India, Andhra Bank was the first to introduce credit cards in 1981.
Axis Bank is the first bank to launch open loop smart cards in India to be used in public transportation.
Most banks in India issue visa debit cards, but SBI and Citi bank India issue Maestro Card.

Debit Cards
A feature of a debit card (also known as a bank card, check card or some other description) is that when a cardholder makes a purchase funds are withdrawn directly from either the cardholder’s bank account or from the remaining balance on the card. In some cases, the ‘cards’ are designed exclusively for use on the Internet, and so there is no physical card.
The debit cards are used to withdraw cash from an ATM, purchase of goods and services at Point of Sale (POS)/E-commerce (online purchase) both domestically and internationally (provided it is enabled for international use). However, it can be used only for domestic fund transfer from one person to another.

Charge Card
A feature of a debit card (also known as a bank card, check card or some other description) is that when a cardholder makes a purchase funds are withdrawn directly from either the cardholder’s bank account, or from the remaining balance on the card. In some cases, the ‘cards’ are designed exclusively for use on the Internet, and so there is no physical card.

ATM Card
An ATM card is any card that can be used in automated teller machines (ATMs) for transactions such as deposits, cash withdrawals, obtaining account information, and other types of transactions, often through interbank networks.

Stored Value Card
A feature of a stored value card is that a monetary value is stored on the card, and not in an externally recorded account and differs from prepaid cards where money is on deposit with the issuer similar to a debit card.

Smart Card
A smart card is a plastic card about the size of a credit card, with an embedded microchip that can be loaded with data, used for telephone calling, electronic cash payments and other applications and then it can be periodically refreshed for additional use.

RuPay Card
RuPay is an Indian domestic card scheme conceived and launched by the National Payments Corporation of India (NPCI). It was created to fulfill the Reserve Bank of India’s desire to have a domestic, open loop, and multilateral system of payments in India. The Rupay card, a prepaid debit card, was launched as the Dhan Aadhaar card in December, 2011. The Unique Identification Authority of India (UIDAI) is a central government agency of India which issues a 12-digit unique identity number called Aadhaar to each resident.

Aadhaar Enabled Bank Accounts
The AEPS system leverages Aadhaar online authentication and enables Aadhaar Enabled Bank Accounts (AEBA) to be operated in anytime-anywhere banking mode through Micro ATMs. This system is controlled by the National Payments Corporation of India (NPCI). The 5 Aadhaar enabled basic types of banking transactions are Cash Withdrawal, Cash Deposit, Aadhaar to Aadhaar Funds Transfer, Balance Enquiry and Gateway Authentication Service.

Master Card
Worldwide credit card corporation works with financial institutions to issue credit cards. The credit cards distributed by the company are done so under the MasterCard brand, which is one of the three major credit cards accepted at vendors across the world. Master Card was converted from a privately held company to a public company on 25th May,2006. Its principal business is to process Payment between banks of merchants. All financial institutions in banks are the member of this Master Card providing international service except bank of America.

Visa Card
Visa Card is a type of debit card on Visa network. It has VISA logo and can be accepted to pay for the things and money can also be drawn directly from your account. These are the debit cards, which are subject to a daily limit, and/or a maximum limit equal to the current/checking account balance from which it draws funds.

Kisan Gold Card
This is a hassle free term loan card that enables to avail loan for agricultural implements, land development, repair of farm machinery and consumption needs. Farmers have the choice in regard to amount, time and purpose. The amount of loan is 5 times the annual farm income with the maximum limit of ₹ 5 lakhs. For the consumption purpose it should not exceed 20% of the limit.

Value Added Services
Value added services provided by Commercial Bank are as follows

Safe deposit locker facility
Travellers’ cheques
Premium of insurance
E-banking facilities
Anywhere banking
ATM facilities
Credit card facilities
ATM debit card facilities

List of Facilities Launched by Banks

Airtel money	AXIS Bank +Airtel
Chillr	HDFC Bank
Digital Banking ‘Pocket’	ICICI
eforex	SBI
e-KYC	SBI
EMI on Debit-Card	ICICI Bank
eWallet	IRCTC
First home grown Index ‘Composite Index’	SBI
Kisan card	AXIS Bank
M-Pesa	ICICI+Vodafone
M-Wallet	Canara Bank
State Bank Freedom App	State Bank of India
Student Travel Card	ICICI
TAB Banking Facility	SBI
DigiLocker	Government of India

Indian Gold Scheme
Prime Minister Narendra Modi launched three gold related scheme viz Gold Monetisation Scheme (GMS), Sovereign Gold Bond Scheme (SGBS) and Indian Gold Coins (IGC). These ambitious schemes were launched to reduce the physical demand for gold and fish out 20000 tonnes of the precious metal lying idle with households and institutions.

Sovereign Gold Bond Scheme (SGBS)
The purpose of the scheme is to reduce the demand for physical gold. Seeks to shift part of physical gold in form of bars and coins for investment into Demat (Dematerialised) gold bonds in order to reduce the demand for physical gold. These gold bonds are interest bearing and will be payable in terms of grams of gold. RBI on behalf of Union Government will issue the Gold bonds in the denominations of one gram and its multiples. These bonds are available in Demat and paper form. It can be tradable in stock exchange and can be used as collateral for loans.
Scheme tagline: Invest wisely. Earn Safely.
Minimum investment: 2 g of physical gold;
Maximum investment: 500 g
Tenure of Gold bonds: 8 yrs is
maximum tenure:But there is exit option from 5th year can be exercised on interest payments dates.

Gold Monetisation Scheme (GMS)
GMS 2015 will offer option to resident Indians to deposit their precious metal and earn an interest on it and will replace the existing Gold Deposit Scheme (GDS) 1999.
All residents can invest in this scheme but are subjected to Know Your Customer (KYC) Scheme. As per Reserve Bank of India (RBI) directives all Scheduled Commercial Banks (excluding Regional Rural Banks) will implement GMS 2015. Banks are free to fix the interest rates and it will be denominated in gold.
Scheme tagline: Earn, while you secure.
Deposit limit: Minimum deposit at any one time of raw gold in the forms of bars, coins, jewellery excluding stones and other metals is 30 g with 995 fineness. There is no maximum limit for the deposit.
Tenure Banks will accept gold deposits under the Short Term of Bank Deposit (STBD) of 1-3 yrs, Medium (5-7 yrs) and Long (12-15 yrs).

Indian Gold Coin
It is Indian’s first ever Indian gold coin and bullion to be officially issue by Union Government. The gold coins will bear national emblem Ashok Chakra on one side and Mahatma Gandhi’s engraved image on the other side. Denominations The coins will be available in denominations of 5 g and 10 g and a 20 g bullion. Available at 125 Metals and Minerals Trading Corporation (MMTC) of India outlets across the country. These coins and bullion are easily liquidated.

Important Bank Terms

Personal Identification Number
A personal identification number (PIN number) is a numeric password used to authenticate a user to a system, in particular in associated with an ATM card. The PIN is not printed or embedded on the card but is manually entered by the cardholder during automated teller machine (ATM) and point of sale (PoS) transactions (such as those that comply with EMV), and in card not present transactions, such as over the Internet or for phone banking.

One Time Password
It is a unique 6-character code that can only be used once and is sent only to your registered mobile number in BDO Online Banking. After encoding your user ID and password, you will also be required to enter the correct OTP to complete the login process. It serves as your second password that’s unique with every login and expires 5 min after you receive it.

Card Verification Value (CW)
Card verification value (CW) is a combination of features used in credit, debit and automated teller machine (ATM) cards for the purpose of establishing the owner’s identity and minimising the risk of fraud. The CW is also known as the card verification code (CVC) or card security code (CSC).
On a typical credit card, there are two components to the CW. The first code is recorded by the card issuer in a magnetic stripe that runs lengthwise along the back of the card. The second code is a multidigit numeral printed flat on the card, separate from the longer, embossed account numeral. On a VISA, Master Card or Discover Card, the printed CW contains three digits and is located on the back near the signature area.

Green PIN
The Green PIN is the One Time Password (OTP) sent to the customer’s mobile number with which the customer can set the debit card PIN at the bank’s ATM. Apart from being convenient and time saving in both interfaces of the transaction, the system is also environment friendly. Customers will get the OTP within 48 h of application. The facility is available in all states except Jammu and Kashmir owing to restrictions in the state on bulk SMS deliver. PNB started this facility in January, 2016.

Green Remit Card
State bank of India (SBI) launched new ‘green channel’ service. This facility offer paperless green banking for deposit, withdraw and remittance transactions. No need to fill up any pay in slip and cheques or sign for depositing or withdrawing money from account. Did not remember account number, only carry green remit card. Features SBI ‘Green Card’ is a simple magnetic stripe based card transaction through green channel counter (GCC) or cash deposit machine (CDM).
All customers are eligible for getting this card, visit any GCC or CDM branch and submit simple application along with copy of one ID proof document. Bank will issue printed Green Remit Card instantly to the applicant.
Deposit Limit Transaction Limit ₹: 5000 per transaction (Monthly limit ₹ 25000). Deposit only through cash.

Question Bank

1. There is no requirement for the beneficiary to have a bank account for

cardless cash facility
instant money transfer facility
Insurance facility
Immediate Payment Service
MMID

2. For transacting at an ATM, the customer inserts (swipe) his card in the ATM and enters his

Personal Identification Number
Mobile Number
Aadhaar Number
Account number
Cheque Number

3. India’s first ‘talking’ ATM was launched by

ICICI Bank
United Bank of India
Citi Bank
SBI
Union Bank of India

4. First Bank to introduce ATM in India was

HSBC
SBI
CBI
PNB
UCO Bank

5. A ‘Debit Card’ is issued by a bank to

all customers of a bank
all customers having savings bank account with a bank
all customers having loan account with a bank
a bank customer who is income tax assesee
all corporate Salary account holder

6. Machine, within or outside the bank premises that enables customers to conduct cash withdrawals and other specific banking transactions without the help of bank staff, is called

Automated Teller Machine (ATM)
PC
internet .
intranet
servers

7. A card stores and provides identification, authentication, data storage and application processing applications

Debit Card
Smart Card
Credit Card
ATM Card
None of these

8. Which of the following is a leading electronic payment technology firm ? (The logo of the firm can be seen printed on credit cards/ ATM centres etc.)

Visa
Max
BSE
Sensex
SWAP

9. As we all know, more and more countries/organisations are now going for non-cash transactions and accordingly banks have launched many new products in the market for the same. Which of the following products is a non-cash transaction product?

Only ATM Card
Only Credit Card
Only Prepaid Card
Only Debit Card
All are non-cash transaction products

10. Which of the following banks has opened the country’s first, ‘Cash Factory’ in Lucknow which will issue currency notes to all its branches and ATM in that area?

Bank of India
Bank of Baroda
State Bank of India
Union Bank of India
None of these

11. Mini statement of account gives an insight into the last………… transactions of account.

12. A unique……….. and mobile number combination help in identifying the beneficiary’s details.

IMTF
MM ID
IMPS
NPCI
MOTO

13. The participants for IMPS are

Sender
Receiver
Banks
NFS
All of these

14. Range of ATM insurance policy

₹ 50000 to ₹ 5 lakh
₹ 50000 to ₹ 10 lakh
₹7 50000 to ₹ 20 lakh
₹ 5 lakh to ₹ 20 lakh
₹ 20 lakh to ₹ 30 lakh

15……… do not have bank logo, as they are setup by non-banking entities.

White label ATM’s
Online ATM’s
Onsite ATM’s
Offsite ATM’s
Stand Alone ATM’s

16. Banks offers new cardless cash facility called

Cash-on-net
Cash-on-deposit
Cash-on-mobile
Cash-on-services
Cash-on-cash

17. IMPS is a past of mobile application. Customers can withdraw upto ₹ 5000 per day through cash-on-mobile. What is IMPS?

Interbank Money Payment Services
Intra Money Payment Services
Intral Mobile Payment Services
Interbank Mobile Payment Services
Interbank Mini Payment Services

18. Aadhaar enabled basic types of banking transactions are

Cash withdrawal
Cash deposit
Balance enquiry
1 and 2
All of these

19. The UIDAI is a central government agency of India which issues a

10-digit unique identity number
12-digit unique identity number
14-digit unique identity number
15-digit unique identity number
20-digit unique identity number

20. The credit card can be used for purchase of goods and service through

Interactive Voice Response (IVR)
Recurring transactions
Mail order telephone order
All of the above _A
None of the above

21. …. launched new green channel service.

State Bank of India
Union Bank of India
UCO Bank
Dena Bank
Punjab National Bank

22. …. ATM is provided for e-commerce.

Orange Label
Blue Label
Yellow Label
Purple Label
Red Label

23. ……has the largest ATM network.

ICICI Bank
SBI
AXIS Bank
HDFC Bank
UCO Bank

24. Services available on the CDM is/are

Pin change
Balance enquiry
Mini statement of account
All of the above
None of the above

25. Some of the salient features of Cash Deposit Machines are

Paperless transaction
The per transaction limit is ₹ 49900
Quick and convenient way to deposit cash
All of the above
None of the above

26. The benefit of ATMs for customers

Provide 24 X 7 and 365 days a year service .
Provide errror free service
Allow privacy in transactions
1 and 2
All of the above

27. These ATMs are not connected to bank’s data base

Online ATMs
Offline ATMs
Brown Label ATMs
Mobile ATM
1 and 3

28. WLA ATMs are setup, owned and operated

Nationalised bank
SBI
Non-banks
RBI
Private bank

29. It works as women banking

Pink label ATM
Green label ATM
Mobile ATM
1 and 2
None of these

30. NPCI launched India’s first rural bank ATM card with a regional rural bank in

Varanasi
Delhi
Thane
Bengaluru
Patna

31. It provides for Agricultural transaction

Worksite ATM
Green Label ATM
Yellow Label ATM
Orange Label ATM
Black Label ATM

32. Choose the correct statements).
I. First Bank to introduce ATM in India was HSBC.
II. ICICI was the first Bank to provide Mobile ATM.
III. India’s first non-bank owned ATM opens in Thane.
Which of the above statement is/are correct?

I and II
II and III
I and III
I, II and III
None of these

33. PM Narendra Modi launched gold related schemes, namely
I. Gold Monetisation Scheme
II. Sovereign Gold Bond Scheme
III. Indian Gold Coins
Codes

Only II
I and II
I, II and III
II and III
Only III

34. Choose the correct statement(s) regarding bank card.
I. A bank card is typically a plastic card.
II. Bank card performs one or more of a ‘ number of services.
III. Bank card issued by a retail chain to its clients.
Codes

I and II
II and III
I, II and III
I and III
None of these

35. Choose the correct statements).
I. The PIN is not printed or embedded on the card.
II. The PIN is manually entered by the cardholder during ATM.
III. The PIN is a numeric password.
Which of the above statement is/are correct?

Only II
I, n and III
I and II
II and III
I and III

36. Which of the following is the limitation of the ATMs owing to which people are required to visit branches of the bank?
I. It does not accept deposits.
II. It has a limited cash disbursement capacity.
III. Lack of human interface.
Select the correct answer using the codes given below

Only I
Only II
Only III
III, II and I
None of these

37. In addition to cash dispensing ATMs may have many services/facilities such as
I. Account information
II. Cash Deposit
III. Regular bills payment
IV. Mini/Short Statement
Codes

I, II and III
II, III and IV
I, II, III and IV
II and III
I and IV

38. A centralised database with online connectivity to branches, Internet as well as ATM network which has been adopted by almost all major banks of our country is known as [IBPS Clerk 2011]

Investment banking
Core banking
Mobile banking
National banking
Specialised banking

39. Which of the following is known as Plastic Money? [Indian Overseas Bank 2011]
I. Demand Draft
II. Credit Card
III. Debit Card
Select the correct answer using the codes given below

Only I
Only II
Only III
Both II and III
All of these

40. The term ‘Plastic money’ refers to [SBI Associates 2012]

ATM/Credit Cards
Plastic Coated Currency Notes
Foreign Currency Notes
Travellers’ Cheque
None of the above

41. The Abbreviation ‘UIDAI’ stands for [SBI Associates 2012]

Unique Identification Division of All India
Unique Identification Department of Ancient India
Unique Identity Division of Ancient India
Unique Identification Authority of India
None of the above

42. It is mandatory to quote the following identification number on all large value financial transactions [SBI Associates 2012]

PAN number
Voter ID
PIN
Ration Card number
Phone number

43. A bank without any branch network that offers its services remotely through online banking, telephone/mobile banking and interbank ATM network alliances is known as [IBPS PO 2013]

Universal Banking
Indirect Bank
Door Step Bank
A Direct Bank
Unit Banking

44. The concept of ‘Micro Credit’ essentially concentrates on [IBPS PO 2013]

consumption smoothening as and when needed
providing safe place to hold savings
accepting deposits
provision of credit to the poor
facility to transfer money

45. The Aadhaar Enabled Payment System (AEPS) is a bank-led model that facilitates banking facilities through banking correspondents across banks. However, Aadhaar enabled basic types of banking transactions do ‘not’ include [IBPS PO 2013]

Aadhaar-to Aadhaar funds transfer
Small overdraft facility
Cash withdrawal
Balance enquiry
Cash deposit

46. Which of the following services relate to execution of transactions directly with consumers, rather than corporations or other banks? [IBPS PO 2013]

Wholesale Banking Services
Industrial Banking Services
Investment Banking Services
Corporate Banking Services
Retail Banking Services

47. Value added services means [SBI PO 2013]

low cost products
high cost products
at par services
additional services for the same cost
giving discounts

48. The target market for Debit Cards is [SBI PO 2013]

all existing account holders
all agriculturists
all DSAs
all vendors
all outsourced agents

49. The term ATM refers to [RBI Grade B 2013; SBI Associate 2012]

Asynchronous Transfer Mode
Advanced Technical Material
Automated Teller Machine
Arabian Travel Market
None of the above

50. Scheduled commercial banks can install offsite ATMs at centres/places identified by them, without taking RBI’s prior approval provided [RBI Grade B 2013]

The business transacted at the offsite ATM is recorded in the books of respective branch/base branch/centralised data centre
No person other than the security guard is posted at the offsite ATM
Third party advertisement, such as, products of other manufacturers/ dealers/vendors are not displayed on the ATM screens/network
All of the above
None of the above

51. As per RBI directives, through offsite ATMs the banks may provide the facilities of [RBI Grade B 2013]

Interbank funds transfer – transfer of funds between the bank’s customers and customers of other banks
Personal Identification Number (PIN) changes
Requisition of cheque books
All of the above
None of the above

52. Which of the following statements about withdrawing cash from ATM of other banks are correct? [RBI Grade B 2013]

There will be no charge for withdrawing money from other banks’ ATMs up to five occasions in a month
‘Free access to other banks’ ATMs subject to ceiling of ₹ 10000 transaction
If the ATM of other banks is accessed for more than five times a month, banks may levy charges up to ₹ 20 per transaction
All of the above
None of the above

53. The Society for Worldwide Interbank Financial Telecommunication (SWIFT) [RBI Grade B 2013]

was registered as a company in Belgium
is a bank owned non-profit cooperative society
became operational in May, 1977
All of the above
None of the above

54. ATM is a computerised telecommunications device that provides the clients a financial institution with access to financial transactions in a public space without the need for [RBI Grade B 2013]

cashier
human clerk
bank teller
All of the above
None of the above

55. Using an ATM, customers can [RBI Grade B 2013]

access their bank accounts in order to make cash withdrawals (or credit card cash advances)
check their account balances
purchase cell phone prepaid credit
All of the above
None of the above

56. ATMs of various banks in the country are connected through [RBI Grade B 2013]

LAN
WAN
NFS
SPNS
None of these

57. ‘Buy Now Pay Now’ refers to which of the following? [TOPS Clerk 2014]

Affinity Card
Smart Card
Business Card
Credit Card
Debit Card

58. As per cent press in India, White Label ATMs are installed. What is meant by a white label ATM? [IBPS Clerk 2014]

ATMS, which are setup by non-banking entities
ATMs, which are white in colour
ATMs, which are setup by group of foreign banks operating in India
ATMs, which are setup by Reserve Bank of India
ATMs, which are installed by group of bankers

59. State Bank of India on May, 2015 launched State Bank RuPay Platinum debit card in association with National Payment Corporation of India (NPCI). The RuPay card is accepted at [SBI PO 2015]

ATMs
PoS
E-commerce
All of these
None of these

60. Prime Minister Narendra Modi on 5th Nov, 2015 launched three gold related schemes under [IBPS Clerk 2015]

Digital India
Make in India
Startup India
Rashtriya Saksharta Mission
Swarna Bharat Yojana

61. The first ATM was setup in Mumbai in 1987 by [RBI Grade B 2015]

ICICI Bank
SBI
HDFC Bank
HSBC Bank
Citi bank

62. In order to sign up your recently launched Digital Locker (DigiLocker) by government of India, one needs to have a mobile phone number linked to a

Adhaar number [RBI Grade B 2015]
PAN
bank account number
safe deposit locker
passport number

63. The installation of ‘Talking ATMs is aimed at making ATMs friendly for [RBI Grade B 2015]

minors
foreigners
differently-abled users
senior citizens
non-costumers

64. The mobile wallet services ‘M-Pesa’ has been introduced by Vodafone in partnership with [RBI Grade B 2015]

Visa Inc
Master Card Inc
ICICI Bank
American Express Co.
NPCI

65. Which of the following public sector banks have launched ‘Mingle’ to enable its customers to access to various banking on July, 2016? [UBI PO 2016]

Bank of India
Union Bank of India
Bank of Baroda
State Bank of India
Allahabad Bank

66. As per the recent press report, RBI has selected how many companies for setting up of payment banks in the country? [UBI PO 2016]

67. ‘M-Pesa’, a mobile based money transfer and payment service, were launched by Vodafone in the year 2007. In India, Vodafone India launched it in 2013 in association with [RBI Grade B 2016]

YES Bank
SBI
HDFC Bank
Kotak Mahindra Bank
ICICI Bank

68. Chairman of the ‘Bank Board Bureau (BBB), Shri Vinod Rai has recently stepped down from the board of [RBI Grade B 2016]

HSBC Bank
ICICI Bank
IDBI Bank
HDFC Bank
IDFC Bank

69. Recently introduced by National Payments Corporation of India (NPCI), the‘NACH’ is a centralised [RBI Grade B 2016]

application processing for banks system
Credit appraisal system
Electronic clearing system
Core Banking system
None of those given options

70. The Reserve Bank of India has authorised non-banks to operate ‘White label ATMs’ under the provisions of [RBI Grade B 2016]

Reserve Bank of India Act, 1934
Negotiable Instruments Act, 1881
Negotiable Instruments (Amendment) Act, 2015
Banking Regulation Act, 1949
Payment and Settlement Systems Act, 2007

71. EFT POS stands for [IBPS PO 2016]

Electronic Funds Transfer at Pre of Sale
Electronic Funds Transfer at Prepaid of Sale
Electronic Funds Transfer at Point of Sale
Electronic Funds Transfer at Present of Sale
Electronic Funds Terminals at Point of Sale

Banking Awareness Study Material – Banking Innovation in India

Banking Awareness Study Material – Banking Innovation in India

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