Centralised Payment System MCQ — 100 Practice Questions with Answers

Q1. Consider the following statements about the application process for CPS membership: 1. Applications for CPS membership are submitted to the Chief General Manager, Department of Payment and Settlement Systems, RBI Central Office. 2. The application is submitted in the format prescribed in Appendix 1, Covering letter for membership to Centralised Payment System, together with annexures. 3. RBI endeavours to scrutinise complete applications within 60 days of receipt. 4. On approval, the non-bank entity gets a letter of approval valid for one year, within which it must ensure participation in CPS. Which of the statements given above are correct?

Q2. Consider the following statements about eligibility criteria for non-bank PSP access to CPS: 1. A valid Certificate of Authorisation from RBI under the Payment and Settlement Systems Act, 2007 is required. 2. A net worth of Rs. 10 crore is the RBI criterion for CPS access by non-bank PSPs. 3. Compliance with local payment data storage requirements issued by RBI is one of the criteria. Which of the statements given above are correct?

Q3. Consider the following statements about the application approval stage for non-bank CPS access: 1. On approval, DPSS, Central Office issues a letter of approval to the non-bank entity. 2. The approval letter is valid for six months, within which the entity must ensure participation in CPS. 3. The approval letter is valid for one year in the first instance. Which of the statements given above are correct?

Q4. Consider the following statements about RTGS and NEFT processing: 1. RTGS stands for Real Time Gross Settlement. 2. In RTGS, settlement instructions are processed individually without netting. 3. NEFT, like RTGS, processes transactions continuously on a transaction-by-transaction basis throughout the day. Which of the statements given above are correct?

Q5. Consider the following statements about Centralised Payment Systems in India: 1. RTGS and NEFT are Centralised Payment Systems owned and operated by the Reserve Bank of India. 2. NEFT operates in 48 half-hourly batches on a 24x7x365 basis. 3. RTGS transactions have no floor value for the amount transferred. Which of the statements given above are correct?