Question 1

An entity registered under which act can issue PPIs?

Accepted Answer

B

Question 2

What is the rate of interest offered on PPI balance?

Accepted Answer

PPIs (Prepaid Payment Instruments) generally do not offer any interest on the balances maintained in them.

Question 3

Which of the following is not one of the types of PPIs issued?

Accepted Answer

Prepaid Payment Instruments (PPIs) are financial instruments that facilitate the purchase of goods and services against the value stored on such instruments. The types of PPIs commonly recognized are Closed System PPIs, Semi-closed System PPIs, and Open System PPIs. There is no category officially recognized as Semi-open System PPIs.

Question 4

What is the maximum permitted limit of balance at any point in time in PPIs per month?

Accepted Answer

The answer of What is the maximum permitted limit of...

Question 5

Venture capital is concerned with:

Accepted Answer

The answer of Venture capital is concerned with:
...

Question 6

What is the maximum validity period of a PPI?

Accepted Answer

The maximum validity period of a Prepaid Payment Instrument (PPI) is 12 months. After this period, if the PPI is not used or revalidated, it may expire according to the terms and conditions laid down by the issuing authority.

Question 7

The PPIs that are issued by an entity for facilitating the purchase of goods and services from that entity only and do not permit cash withdrawal are known as_____________

Accepted Answer

Closed System PPIs are designed for purchasing goods and services exclusively from the issuer of the PPI. They do not allow cash withdrawal or transactions with other merchants.

Question 8

Paytm, MobiKwik is an example of which type of PPI?

Accepted Answer

Paytm and MobiKwik are examples of Semi-closed System PPIs, which allow users to purchase goods and services, including financial services, at a group of clearly identified merchant locations/establishments which have a specific contract with the issuer to accept the PPIs as payment instruments.

Question 9

Which of the following is an example of Open System PPIs?

Accepted Answer

The answer of Which of the following is an example...

Question 10

In the Open System PPIs, the outstanding amount should not exceed______________ at any point.

Accepted Answer

As of the latest guidelines by the Reserve Bank of India (RBI), the outstanding amount in Open System Prepaid Payment Instruments (PPIs) should not exceed Rs 1 lakh at any point. This is part of the RBI's efforts to enhance and expand the scope of PPIs while ensuring user safety and compliance with financial regulations.

Question 11

In …………………..type of payment system customer is allowed to spend only up to the amount that have pre deposited into account.

Accepted Answer

In a prepaid payment system, customers can only spend the amount they have previously deposited into their account, which limits spending to the available balance.

Question 12

……………………….credit card gives all the advantages of a normal credit card without worrying about the interest charges.

Accepted Answer

A prepaid credit card allows users to spend only the money they have already deposited onto the card, thus avoiding interest charges associated with traditional credit cards.

Question 13

A……………………..is a device that includes an embedded integrated circuit Chip [ICC] that can be either a secure micro controller or equivalent intelligence with internal memory or a memory chip alone.

Accepted Answer

Smart cards contain an embedded integrated circuit chip (ICC) that can be a secure microcontroller or equivalent intelligence with internal memory or a memory chip alone, enabling them to store and process data securely.

Question 14

Smart Card is ______

Accepted Answer

Smart cards are microprocessor cards that contain a processing unit and memory for storing data, enabling them to perform various functions securely.

Quiz 4: Prepaid Payment Instruments (PPIS) and Venture Capital