Prepaid Payment Instruments all you Need to Know

Model Questions for Banking & Other Exams

1. What does ‘E’ in acronym ‘NEFT’ stand for?

a) Economic

b) Electronic

c) Employee

d) Enterprise

e) Equity

Ans: b

Solution:

NEFT stands for ‘National Electronic Funds Transfer’. 

NEFT is a nation-wide payment system facilitating one-to-one funds transfer. There is no limit – either minimum or maximum – on the amount of funds that could be transferred using NEFT. However, maximum amount per transaction is limited to Rs. 50,000/- for cash-based remittances within India and also for remittances to Nepal under the Indo-Nepal Remittance Facility Scheme.

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2. CFMS is a system operated by the RBI to enable operations on current accounts maintained at various offices. What “C” denotes in acronym CFMS? 

a) Core

b) Circular

c) Centralised

d) Current

e) Controlling

Ans: c

Solution:

The Centralised Funds Management System (CFMS), is a system set up, operated and maintained by the Reserve Bank of India (hereinafter referred to as the ‘Bank’) to enable operations on current accounts maintained at various offices of the Bank, through standard message formats in a secure manner.

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3. ‘IFSC’ is an 11-digit alpha-numeric code assigned by RBI to identify every bank branch participating in the payment system uniquely. What is the full form of IFSC?

a) Indian Fiscal System Code

b) Intra-Bank Financial System Code

c) Indian Fiscal Source Code

d) International Financial Source Code

e) Indian Financial System Code

Ans: e

Solution: 

The Indian Financial System Code (or IFSC) is an 11-digit alpha-numeric code assigned by the Reserve Bank of India to identify every bank branch participating in the payment system uniquely.