Digitisation: internet banking, mobile banking, digital payments - One Line Questions
1.
What does 'IMPS' offer that NEFT does not always guarantee? —
24/7 availability
2.
Which of the following is an example of a digital wallet? —
Google Pay
3.
What is a 'payment gateway' in the context of online transactions? —
A service that authorizes and facilitates credit card payments
4.
What does 'KYC' (Know Your Customer) entail in the context of digital banking? —
A process to verify the customer's identity and address
5.
What is the term for unauthorized access or fraudulent activity related to internet banking credentials? —
Phishing
6.
What role does a 'payment aggregator' play in digital payments? —
Collecting payments from customers and settling them with merchants
7.
Which of the following is NOT a type of digital payment method? —
Cash on Delivery
8.
What is the main difference between a credit card and a debit card in terms of fund usage? —
Debit cards use pre-deposited funds, credit cards use borrowed funds
9.
Which term describes the ability for anyone to access and use digital banking services regardless of their location? —
Accessibility
10.
Which of the following is a potential downside of digital payments for merchants? —
Transaction fees and chargebacks
11.
Which term refers to the ability to perform financial transactions anytime, anywhere using digital means? —
Ubiquity
12.
Which of the following is a disadvantage of excessive reliance on digital banking for some demographics? —
Potential exclusion of digitally illiterate individuals
13.
Which of the following is a direct benefit of digitisation for banking institutions? —
Improved operational efficiency and reduced costs
14.
What is the main advantage of digitisation in banking? —
Enhanced convenience and speed
15.
What is the primary risk associated with sharing one's internet banking credentials? —
Unauthorized access to funds and personal information
16.
Which of the following is a benefit of mobile banking for customers? —
Reduced need for physical branch visits
17.
Which of the following is a key advantage of digitisation for financial inclusion? —
It enables easier access to financial services for unbanked populations
18.
Which technology underpins many instant payment systems like UPI? —
Near Field Communication (NFC)
19.
Which of the following is a common feature of modern digital payment apps? —
Real-time transaction notifications
20.
What does 'NEFT' stand for in the context of digital payments? —
National Electronic Funds Transfer
21.
Which digital payment system allows for real-time, inter-bank fund transfers in India? —
IMPS
22.
Which digital payment method typically involves a virtual card number for enhanced security? —
Credit Card (with tokenization)
23.
Which type of digital payment method uses Near Field Communication (NFC) technology? —
Contactless payments (e.g., tap-to-pay)
24.
What is a potential risk associated with internet banking? —
Phishing and cyber fraud
25.
Which of the following is a key component of a digital payment ecosystem? —
Payment gateways
26.
Which of the following is a primary characteristic of internet banking? —
Access to banking services via the internet
27.
What security feature is commonly used in mobile banking to verify user identity? —
Biometric authentication (fingerprint, face ID)
28.
What does 'tokenization' in digital payments aim to achieve? —
Replacing sensitive card details with a unique token
29.
What is the primary benefit of 'contactless payment' technology? —
Speeds up the transaction process by avoiding physical card insertion and PIN entry for small amounts
30.
What is the main security measure banks implement to protect against unauthorized access to internet banking? —
Using robust encryption and multi-factor authentication
31.
Which digital payment system is often used for recurring payments like subscriptions? —
UPI Autopay
32.
Which entity oversees the regulatory framework for digital payments in India? —
Reserve Bank of India (RBI)
33.
Which of the following is a common security practice for mobile banking apps? —
Regularly updating the app to the latest version
34.
What is the main security concern when using public Wi-Fi for internet banking? —
Increased risk of data interception
35.
What does 'RTGS' facilitate in the banking system? —
Large value, real-time gross settlement of funds
36.
Which entity is responsible for issuing and managing the Unified Payments Interface (UPI) in India? —
National Payments Corporation of India (NPCI)
37.
What is the 'expiry date' on a credit or debit card related to? —
The date until which the card is valid for transactions
38.
What does the term 'digital divide' refer to in the context of banking? —
The gap between those who have access to digital technology and those who do not
39.
What is the main objective of the 'Aadhaar Enabled Payment System' (AEPS)? —
To allow banking transactions using Aadhaar authentication
40.
What is the primary goal of promoting digital payments by governments and banks? —
To foster a less-cash economy and improve transparency
41.
What is the main purpose of Two-Factor Authentication (2FA) in digital banking? —
To add an extra layer of security beyond just a password
42.
What is the role of a 'Payment Aggregator' in the digital payment chain? —
To provide a platform for merchants to accept payments from various sources
43.
What is the primary function of a 'Payment Service Provider' (PSP)? —
To enable merchants to accept various forms of digital payments
44.
What is the primary purpose of a QR code in digital payments? —
To facilitate quick scanning for payment initiation
45.
What is the primary purpose of a 'Statement of Account' provided through internet or mobile banking? —
To list all transactions and balances over a period
46.
What is the primary function of a mobile banking application? —
To allow users to manage their bank accounts remotely using a smartphone
47.
What is the primary function of a 'Virtual Private Network' (VPN) when used for internet banking? —
To encrypt internet traffic and mask IP address for enhanced security
48.
What does the term 'FinTech' primarily refer to? —
Technology used in financial services
49.
Which term refers to the process of converting physical cash into digital currency? —
Digitalisation
50.
Which of the following is a common method of digital payment? —