Question 1

What is the full form of UPI in the context of digital payments in India?

Accepted Answer

Unified Payments Interface. Unified Payments Interface (UPI) is a real-time payment system developed by NPCI. It allows users to link multiple bank accounts into a single mobile application. This system facilitates instant fund transfers between bank accounts using a Virtual Payment Address.

Question 2

Which organization acts as the umbrella entity for operating retail payments in India?

Accepted Answer

National Payments Corporation of India (NPCI). NPCI is an initiative of RBI and Indian Banks' Association (IBA) under the Payment and Settlement Systems Act, 2007. It manages various retail payment products like RuPay, IMPS, and BHIM. The entity is a 'Not-for-Profit' company registered under the Companies Act.

Question 3

What is the maximum limit for a single transaction through the BHIM app generally?

Accepted Answer

Rs. 1,00,000. The standard limit for a single transaction on the BHIM app is currently set at Rs. 1 lakh. This limit is designed to balance user convenience with financial security protocols. Users are also restricted to a total daily limit of Rs. 1 lakh across all transactions.

Question 4

Which technology is primarily used by BharatQR to facilitate merchant payments?

Accepted Answer

Quick Response (QR) Code. BharatQR is an interoperable QR code-based payment solution developed by NPCI, Mastercard, and Visa. It allows merchants to accept payments from various apps without needing a physical PoS machine. The system supports major card networks including RuPay, Visa, and Mastercard.

Question 5

What does the 'A' stand for in the AEPS system used in micro-ATMs?

Accepted Answer

Aadhaar. AEPS stands for Aadhaar Enabled Payment System, which allows online interoperable financial transactions at PoS terminals. It enables bank-to-bank transactions through Business Correspondents using Aadhaar authentication. The system is highly effective for delivering social security benefits in rural areas.

Digital Payments — Set 1