Q.1 Which of the following is an example of a Unified Payments Interface (UPI) application in India?
PayPal
Google Pay
Stripe
Square
Explanation - Google Pay is a UPI-based digital payment app widely used in India for instant bank-to-bank transfers.
Correct answer is: Google Pay
Q.2 What does NFC stand for in digital payment systems?
Near Field Communication
Network File Control
National Finance Code
Near Fast Connection
Explanation - NFC allows devices like smartphones and cards to communicate wirelessly over short distances for payments.
Correct answer is: Near Field Communication
Q.3 IMPS stands for which type of banking service in India?
Immediate Payment Service
Instant Money Processing System
International Money Payment Service
Integrated Mobile Payment System
Explanation - IMPS is a real-time interbank electronic funds transfer system available 24/7 in India.
Correct answer is: Immediate Payment Service
Q.4 Which of the following is a cryptocurrency?
Paytm
Bitcoin
Visa
Razorpay
Explanation - Bitcoin is a decentralized digital currency that operates without a central bank.
Correct answer is: Bitcoin
Q.5 QR code payments are primarily used for which purpose?
Identifying users
Facilitating digital payments
Tracking shipments
Generating OTPs
Explanation - QR codes allow customers to scan and make payments instantly using digital wallets or banking apps.
Correct answer is: Facilitating digital payments
Q.6 Which Indian regulatory body oversees digital payments and fintech services?
SEBI
RBI
IRDAI
NITI Aayog
Explanation - The Reserve Bank of India (RBI) regulates banking, digital payment systems, and financial technologies in India.
Correct answer is: RBI
Q.7 Which of these is a mobile wallet in India?
PayPal
Amazon Pay
Visa
Mastercard
Explanation - Amazon Pay is a mobile wallet and digital payment platform integrated with Amazon services.
Correct answer is: Amazon Pay
Q.8 What is the primary purpose of the Bharat QR system?
To connect banks internationally
To enable QR-based payments across banks
To secure banking transactions with OTP
To track cryptocurrency payments
Explanation - Bharat QR is an interoperable QR code system for digital payments across multiple banks and wallets in India.
Correct answer is: To enable QR-based payments across banks
Q.9 Which of the following is NOT a feature of digital wallets?
Instant money transfer
Bill payments
Physical check issuance
Mobile recharge
Explanation - Digital wallets allow online transactions but do not issue physical checks.
Correct answer is: Physical check issuance
Q.10 What is the main advantage of contactless card payments?
Faster transactions
Higher transaction fees
Requires PIN for each transaction
Only works for online payments
Explanation - Contactless payments use NFC technology for quick transactions without physically swiping or inserting cards.
Correct answer is: Faster transactions
Q.11 Which technology enables cryptocurrencies to be secure and tamper-proof?
Cloud computing
Blockchain
AI
Big Data
Explanation - Blockchain is a decentralized ledger technology that ensures secure and transparent transactions for cryptocurrencies.
Correct answer is: Blockchain
Q.12 UPI transactions are settled in what manner?
Real-time
Daily batch
Weekly batch
Monthly batch
Explanation - UPI provides instant, real-time settlement of transactions between banks.
Correct answer is: Real-time
Q.13 Which of the following is a popular Indian fintech company?
Stripe
Razorpay
Payoneer
Square
Explanation - Razorpay is an Indian fintech company providing payment solutions for businesses and individuals.
Correct answer is: Razorpay
Q.14 Which of the following is a benefit of digital payments for merchants?
Delayed settlements
Cash handling
Instant transaction confirmation
High dependency on cash
Explanation - Digital payments allow merchants to receive instant confirmation of payments, reducing cash handling and errors.
Correct answer is: Instant transaction confirmation
Q.15 Which of these is a regulatory framework for digital lending in India?
RBI Guidelines
SEBI Regulations
IRDAI Rules
Companies Act
Explanation - RBI issues guidelines for digital lending platforms, ensuring transparency and protecting borrowers.
Correct answer is: RBI Guidelines
Q.16 What does EMI stand for in digital financial transactions?
Equated Monthly Installment
Electronic Money Interface
Estimated Monthly Income
E-Merchant Integration
Explanation - EMI is a fixed monthly payment plan that allows borrowers to repay loans or purchase products over time.
Correct answer is: Equated Monthly Installment
Q.17 Which of these is used to authenticate digital payments securely?
OTP
Barcode
Coupon code
QR code scanning only
Explanation - OTP (One-Time Password) is a secure method to authenticate digital payments and protect against fraud.
Correct answer is: OTP
Q.18 Which type of wallet stores funds online rather than on the physical device?
Cloud Wallet
Hardware Wallet
Plastic Card Wallet
Paper Wallet
Explanation - Cloud wallets are online wallets that store digital money in the cloud, accessible from multiple devices.
Correct answer is: Cloud Wallet
Q.19 Which of the following is a key risk in digital payments?
Fraud and cyber attacks
Faster settlement
Reduced cash handling
Wide adoption
Explanation - Digital payments are vulnerable to fraud, phishing, and cyberattacks if not secured properly.
Correct answer is: Fraud and cyber attacks
Q.20 RBI's Digital Payment Index (DPI) measures what?
Digital payment adoption and penetration
Cryptocurrency value
Bank liquidity
ATM availability
Explanation - DPI reflects the growth and adoption of digital payments across India over time.
Correct answer is: Digital payment adoption and penetration
Q.21 Which protocol is commonly used for secure online payments?
HTTPS
FTP
SMTP
HTTP
Explanation - HTTPS ensures secure communication between a user's browser and the server during online transactions.
Correct answer is: HTTPS
Q.22 Which Indian government scheme promotes digital payments in rural areas?
Digital India
Make in India
Startup India
Skill India
Explanation - The Digital India initiative aims to increase internet connectivity and digital payment adoption in rural and urban India.
Correct answer is: Digital India
Q.23 Which payment system allows international money transfers directly from one bank account to another?
SWIFT
IMPS
UPI
Bharat QR
Explanation - SWIFT enables secure international interbank money transfers, unlike IMPS or UPI which are domestic.
Correct answer is: SWIFT
Q.24 Which type of fintech service provides personal loan decisions using AI algorithms?
Digital lending
Mobile wallet
POS terminals
UPI apps
Explanation - Digital lending platforms use AI and data analytics to evaluate borrower creditworthiness and provide loans online.
Correct answer is: Digital lending
Q.25 Which of these is a commonly used contactless payment method?
Tap & Pay via NFC
Writing a cheque
Cash deposit
Bank draft
Explanation - Tap & Pay via NFC allows payments by simply tapping a card or smartphone on a terminal without physical contact.
Correct answer is: Tap & Pay via NFC