Digital Payments
Digital payments covers electronic transfer modes, QR transactions and customer safety. The exam tests mode selection, failure handling and fraud awareness.
Modes and rules
- UPI uses a virtual payment address and is instant; UPI Lite handles small-value payments.
- NEFT is batch-based; RTGS is high-value and real-time; IMPS is immediate and 24×7.
- AePS uses biometric authentication for basic banking, including DBT withdrawals.
- Cards, prepaid wallets and USSD (*99#) serve different access needs.
- A QR code is a payment request; scanning it debits the payer. It is not a “receive money” button.
- Failed UPI transactions where the account is debited but the beneficiary is not credited should be auto-reversed under RBI timelines, generally by T+1 day.
Worked example
A customer receives a UPI “collect request” from an unknown ID after selling an item online. Reasoning: approving a collect request sends money out; it does not receive money. The customer should decline it, never share the PIN, and report the ID in the app.
Traps that cost marks
- Sharing OTP or UPI PIN to “verify” a refund.
- Scanning a QR code to receive money.
- Installing remote-access apps at a caller’s request.
- Assuming a failed transaction always needs a chargeback; many are auto-reversed.