Home › Exam notes › IBPS Banking › Cards, ATM & POS

Cards, ATM & POS

Banking / Economy Awareness · Payments & Financial Infrastructure

Useful for: IBPS Banking

Overview

Cards give access to accounts or credit; ATMs dispense cash and POS terminals accept card payments at shops.

Key points

Debit cards draw from the account balance; credit cards use a credit limit; prepaid cards hold a loaded value.
RuPay is India’s domestic card network, launched by NPCI in 2012.
White-label ATMs are owned and run by non-bank entities; brown-label ATMs are bank-branded but outsourced.
EMV chip cards and PINs reduce counterfeit fraud.
Card tokenisation replaces card details with a token for online payments.

Explanation

CVV is a security code for card-not-present transactions.
Contactless (NFC) payments allow tap-and-pay for small amounts.
Report lost cards immediately and block them.
Never share card number, CVV or OTP.

Step by step

Identify the institution, rule or instrument asked.
Recall its definition, year, limit or function from a table.
Eliminate options from similar institutions or older rules.

Examples

India’s domestic card network → RuPay (NPCI).
ATMs set up and run by non-bank companies → white-label ATMs.
Replacing card details with a unique code for online use → tokenisation.

Traps and advanced points

Trap: Mixing white- and brown-label ATMs.
Trap: Thinking credit cards draw from the account balance.
Trap: Sharing CVV.

Quick revision

RuPay 2012 by NPCI.
White-label = non-bank.
Tokenisation for online.

Practice MCQs

Which term-description pair is correctly matched for the concept “EXIM Bank”?
1. MCLR — Export-Import Bank of India
2. EXIM Bank — Export-Import Bank of India
3. EXIM Bank — sustained rise in the general price level
4. EXIM Bank — Marginal Cost of Funds based Lending Rate
Read chapter notes · Similar questions
Show answer
Answer: (b) EXIM Bank — Export-Import Bank of India. Supports financing connected with international trade and exports/imports.
Which term-description pair is correctly matched for the concept “RBI”?
1. RBI — Reserve Bank of India
2. RBI — rate at which RBI lends short-term funds against eligible collateral under the liquidity framework
3. CRR — Reserve Bank of India
4. IMPS — Reserve Bank of India
Read chapter notes · Similar questions
Show answer
Answer: (a) RBI — Reserve Bank of India. India’s central bank; monetary policy and banking-system functions are core exam areas.
Which term-description pair is correctly matched for the concept “credit risk”?
1. priority sector lending — risk that a borrower/counterparty fails to meet obligations
2. NABARD — risk that a borrower/counterparty fails to meet obligations
3. credit risk — National Bank for Agriculture and Rural Development
4. credit risk — risk that a borrower/counterparty fails to meet obligations
Read chapter notes · Similar questions
Show answer
Answer: (d) credit risk — risk that a borrower/counterparty fails to meet obligations. Core risk in lending.
Which term-description pair is correctly matched for the concept “mutual fund”?
1. demat account — pooled investment vehicle managed according to a stated scheme mandate
2. mutual fund — pooled investment vehicle managed according to a stated scheme mandate
3. mutual fund — movement of cash and cash equivalents into/out of an entity
4. mutual fund — ability to meet long-term obligations / maintain financial viability
Read chapter notes · Similar questions
Show answer
Answer: (b) mutual fund — pooled investment vehicle managed according to a stated scheme mandate. Investors hold units of the scheme.
In banking/finance, what does “EXIM Bank” refer to most accurately?
1. Know Your Customer
2. mechanisms used to absorb surplus liquidity from the banking system
3. Export-Import Bank of India
4. risk of loss from failed processes, people, systems or external events
Read chapter notes · Similar questions
Show answer
Answer: (c) Export-Import Bank of India. Supports financing connected with international trade and exports/imports.
A debit card draws money from —
1. the account balance
2. a credit limit
3. a loaded wallet only
4. the RBI
Read chapter notes · Similar questions
Show answer
Answer: (a) the account balance. Account.
A credit card uses —
1. the savings balance
2. gold
3. cash only
4. a credit limit
Read chapter notes · Similar questions
Show answer
Answer: (d) a credit limit. Borrowed limit.
RuPay was launched by NPCI in —
1. 2008
2. 2012
3. 2016
4. 2020
Read chapter notes · Similar questions
Show answer
Answer: (b) 2012. 2012.
ATMs owned and run by non-bank entities are —
1. green ATMs
2. mobile ATMs
3. white-label ATMs
4. brown-label ATMs
Read chapter notes · Similar questions
Show answer
Answer: (c) white-label ATMs. White-label.
Bank-branded ATMs run by outsourced firms are —
1. brown-label ATMs
2. pink ATMs
3. micro-ATMs
4. white-label ATMs
Read chapter notes · Similar questions
Show answer
Answer: (a) brown-label ATMs. Brown-label.