MCQ
upsc-p1-economy-digital-fintech MCQ - Practice Questions with Answers
Solve 9 upsc-p1-economy-digital-fintech questions for RAS/RPSC preparation.
Practice questions
Q1Match List I with List II: List I (Instrument) A. UPI B. Prepaid wallet C. Digital rupee D. Private crypto-asset List II (Legal or monetary character) 1. Central bank liability 2. Transfers commercial-bank deposits 3. Not legal tender in India 4. Holds value paid in advance Select the correct answer using the code given below:
UPI transfers commercial-bank deposits (A-2); a prepaid wallet holds advance value (B-4); the digital rupee is a central bank liability (C-1); and a private crypto-asset is not legal tender in India (D-3). Therefore, option D is correct.
Q2Arrange the following stages of a normal UPI payment in the correct sequence: A. The payment message passes through the NPCI switch to the relevant bank. B. The banks debit and credit the respective accounts, followed by settlement through the regulated arrangement. C. The user initiates payment through a UPI ID, mobile number, QR code or collect request. D. The app authenticates the user, normally through device binding and a UPI PIN. Select the correct answer using the code given below:
The user first initiates the payment (C), the app authenticates the user (D), the message then travels through the NPCI switch (A), and the banks debit and credit accounts before regulated settlement (B). Thus, option B gives the correct sequence.
Q3Arrange the following legal developments in chronological order, from earliest to latest: A. Payment and Settlement Systems Act B. Digital Personal Data Protection Act C. Information Technology Act D. Aadhaar Act Select the correct answer using the code given below:
The Information Technology Act came in 2000 (C), followed by the Payment and Settlement Systems Act in 2007 (A), the Aadhaar Act in 2016 (D), and the Digital Personal Data Protection Act in 2023 (B). Therefore, option C is correct.
Q4Consider the following statements concerning privacy and digital finance in India: 1. In K.S. Puttaswamy v. Union of India (2017), privacy was recognised as a Fundamental Right under Article 21. 2. The Aadhaar judgment of 2018 permitted unrestricted mandatory private-sector use of Aadhaar. 3. The Digital Personal Data Protection Act, 2023 provides a framework for processing digital personal data. Which of the statements given above are correct?
Statements 1 and 3 are correct. Puttaswamy placed privacy within Article 21, and the 2023 Act supplies the digital-personal-data framework. Statement 2 reverses the 2018 position: private mandatory use without legal backing was restricted, not made unrestricted.
Q5Match List I with List II: List I (Activity) A. Payment-system regulation B. Securities advice and broking C. Insurance distribution D. Pension-linked digital distribution List II (Primary sectoral regulator) 1. IRDAI 2. PFRDA 3. RBI 4. SEBI Select the correct answer using the code given below:
RBI regulates payment systems (A-3); SEBI regulates securities advice and broking (B-4); IRDAI governs insurance distribution (C-1); and PFRDA governs pension-linked distribution (D-2). Hence, option A is correct.
You've seen 5 of 9 sample questions
Unlimited practice on upsc-p1-economy-digital-fintech comes with the RAS Test Series + Practice pack or Gate Pass.
More questions
6With reference to RBI's digital lending framework, consider the following statements: 1. Outsourcing loan sourcing or servicing to an app transfers responsibility for fair practice entirely away from the regulated lender. 2. The framework emphasises direct disbursal and repayment between the borrower's bank account and the regulated entity. Which one of the following is correct?
7With reference to the institutional architecture of the Unified Payments Interface (UPI), consider the following statements: 1. NPCI operates UPI. 2. RBI regulates payment systems under the Payment and Settlement Systems Act, 2007. 3. UPI transfers central bank money rather than commercial bank deposits. Which of the statements given above are correct?
8With reference to differentiated banks in India, consider the following statements: 1. Payment banks and small finance banks were both covered by RBI guidelines issued on 27 November 2014. 2. Payment banks may undertake lending to small farmers and micro enterprises. 3. Small finance banks may accept deposits and lend to underserved groups. Which of the statements given above are correct?
9With reference to digital financial inclusion, consider the following statements: 1. A rise in digital payments necessarily establishes that tax compliance and productivity have increased. 2. Direct Benefit Transfer can reduce intermediary leakages but authentication failure can exclude genuine beneficiaries. 3. Assisted channels, grievance redress and cash-out points can affect whether digital infrastructure works for poorer households. Which of the statements given above are correct?