Quiz on Payment System and NPCI
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Topic: Quiz on Payment System and NPCI
Number of Questions: 10
Pre-Readings: Overview of Payment Systems in India and NPCI
- The payment and settlement systems in India is regulated as per which act?
A) RBI Act 1934
B) Payment and Settlement Systems Act, 2007
C) NPCI Act 2002
D) PSS Act 2008
View answer
Option B
Explanation: In India, the payment and settlement systems are regulated by the Payment and Settlement Systems Act, 2007 (PSS Act).
- As per PSS Act 2007 no person other than the _____ can commence or operate a payment system in India.
A) National Payment Corporation of India
B) Government of India
C) Reserve Bank of India
D) Both A and C
View answer
Option C
Explanation: In terms of Section 4 of the PSS Act, no person other than the Reserve Bank of India (RBI) can commence or operate a payment system in India unless authorised by RBI.
- Which of these payment system can be defined as: Multiple Debit, Single Credit?
A) NEFT
B) RTGS
C) ECS
D) UPI
View answer
Option C
Explanation: ECS Debit- Multiple Debit, Single Credit.; ECS Credit- Multiple Credit, Single Debit.
- Which of these acts as Central Counter Party (CCP) in the government securities?
A) RBI
B) NPCI
C) CCIL
D) SBI
View answer
Option C
Explanation: The Clearing Corporation plays the crucial role of a Central Counter Party (CCP) in the government securities, USD –INR forex exchange (both spot and forward segments) and Collaterised Borrowing and Lending Obligation (CBLO) markets
- The process of the CCIL subsuming all counterparty credit risk between the buyer and seller is known as?
A) Arbitration
B) Polarisation
C) Seniorage
D) Novation
View answer
Option D
Explanation: CCIL plays the role of a central counterparty whereby, the contract between buyer and seller gets replaced by two new contracts – between CCIL and each of the two parties. This process is known as ‘Novation’. Through novation, the counterparty credit risk between the buyer and seller is eliminated with CCIL subsuming all counterparty and credit risks.
- Which organization was formed for managing retail payment in India?
A) SBI
B) NPCI
C) UPI
D) IBA
View answer
Option B
Explanation: National Payments Corporation of India (NPCI), an umbrella organisation for operating retail payments and settlement systems in India.
- NPCI has been incorporated under ______ of Companies Act 2013.
A) Section 8
B) Section 12
C) Section 4
D) Section 25
View answer
Option A
Explanation: NPCI has been incorporated as a “Not for Profit” Company under the provisions of Section 25 of Companies Act 1956 (now Section 8 of Companies Act 2013)
- There are how many core promoter banks of NPCI?
A) 5
B) 12
C) 10
D) 56
View answer
Option C
Explanation: There are 10 core promoter banks of NPCI- State Bank of India, Punjab National Bank, Canara Bank, Bank of Baroda, Union Bank of India, Bank of India, ICICI Bank, HDFC Bank, Citibank N. A. and HSBC. In 2016 the shareholding was broad-based to 56 member banks to include more banks representing all sectors.
- Which of these payments system is not managed by NPCI?
A) NACH
B) BHIM
C) NEFT
D) CTS
View answer
Option C
Explanation: NEFT managed by RBI
- Which of the following undertakes the Oversight function of the payment and settlement systems in India?
A) NPCI
B) RBI
C) GOI
D) IBA
View answer
Option B
Explanation: Reserve Bank of India undertakes the Oversight function of the payment and settlement systems in the country.
