Banking Awareness Study Material – Banking Innovation in India
Banking Awareness Study MaterialComputer AwarenessMarketing 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.
- 3
- 10
- 13
- 15
- 16
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]
- 41
- 72
- 11
- 18
- 23
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