IIBF Digital Banking flashcards

32 cards. Read the term and the definition here. The deck at the top of this page is optional.

RTGS settlement

Real Time Gross Settlement settles each transaction individually and irrevocably in central bank money, with a minimum transaction value of INR 2 lakh and no upper ceiling.

NEFT settlement

National Electronic Funds Transfer settles transactions in half-hourly batches by deferred net settlement, has no RBI-imposed maximum for retail transactions, and operates 24x7.

UPI virtual payment address

A UPI ID or VPA is a human-readable identifier mapped by NPCI to a customer's bank account or wallet, allowing payment without sharing account numbers or IFSC codes.

UPI PIN authentication

A UPI PIN is a customer-set credential used to authorise each UPI debit; it is entered in the payer app and never shared with the payee or the beneficiary bank.

UPI Autopay mandate

A pre-authorised recurring debit instruction created in the UPI app with a maximum per-debit amount, which the customer can modify or revoke and must be notified of before each debit.

IMPS transaction limit

Immediate Payment Service, operated by NPCI, transfers funds 24x7 including holidays; its per-transaction cap is generally INR 5 lakh, with higher caps for specified channels.

AEPS authentication

Aadhaar Enabled Payment System lets a customer transact using Aadhaar number and biometric authentication at a micro-ATM, needing no card and no smartphone, subject to daily caps.

NACH clearing

National Automated Clearing House is NPCI's bulk system for high-volume, low-value credits and debits such as salaries, subsidies and loan EMIs, replacing the earlier ECS system.

Payment aggregator role

A payment aggregator onboards merchants and facilitates e-commerce payments, holding funds only in a nodal or escrow account with a scheduled commercial bank under RBI authorisation.

Card tokenisation

Tokenisation replaces the primary account number with a surrogate token bound to a specific card, device and merchant, reducing PCI-DSS scope because the merchant never stores the PAN.

3-D Secure authentication

A card network protocol adding an issuer authentication step for card-not-present payments; version 2 supports risk-based authentication and app-based approval, reducing reliance on OTP alone.

EMV chip cryptogram

The chip on an EMV card generates a unique cryptogram per transaction using stored secret keys; the issuer verifies it, so a skimmed magnetic stripe cannot easily produce a valid chip transaction.

Chargeback process

A cardholder-initiated dispute that reverses a transaction through network rules; the merchant must respond within the network deadline with evidence such as authorisation logs and proof of delivery.

Bharat BillPay

NPCI's interoperable bill-payment platform where registered billers accept payment through any BBPS-enabled channel, with complaints escalated to the biller's designated nodal officer.

Account Aggregator framework

An RBI-regulated NBFC that, with explicit purpose-bound and time-limited customer consent, fetches financial data from Financial Information Providers and shares it with Financial Information Users.

Semi-closed prepaid instrument

A wallet usable only at a defined group of merchants and not redeemable for cash; a closed-system instrument is redeemable only for the issuer's own goods or services and needs no RBI authorisation.

Digital Lending Guidelines 2021

RBI rules requiring digital loans to be credited directly to the borrower's bank account and repaid directly to the lender, with no pass-through pool account of a lending service provider.

Key Fact Statement

A pre-contract disclosure in digital lending showing the annual percentage rate inclusive of all fees, recovery agent details, grievance officer and cooling-off period terms.

Lending service provider

An entity providing digital lending services on behalf of a regulated entity under a disclosed contract; it cannot charge borrowers directly without disclosure, and the regulated entity remains accountable.

Video-based customer identification

V-CIP permits remote onboarding through a live video call conducted by a trained official, capturing PAN or equivalent, geo-tagging and recording the interaction for audit.

Aadhaar e-KYC

Aadhaar-based e-KYC returns demographic data and a photograph after OTP or biometric authentication; the consent artefact must be stored and the Aadhaar number masked in records.

Risk-based KYC

Customer due diligence proportionate to assessed risk, with enhanced measures for high-risk customers such as politically exposed persons and non-face-to-face customers, and periodic re-verification.

Suspicious Transaction Report

A confidential report filed with FIU-IND within 7 days of establishing suspicion of money laundering or terrorist financing; the bank must not tip off the customer.

Cash Transaction Report

A report filed with FIU-IND for cash transactions above INR 10 lakh in a month per customer, including connected transactions structured below the threshold to evade reporting.

Beneficial owner threshold

Under PMLA rules, a natural person owning or controlling 10% or more of a company's shares or capital, or 15% or more of a partnership or unincorporated association.

Recovery time objective

The maximum tolerable downtime for a business process after disruption; it is set in the business continuity plan alongside the recovery point objective, which caps tolerable data loss.

CERT-In incident reporting

Directions requiring specified cyber incidents to be reported within 6 hours of noticing, and ICT and log records to be maintained for 180 days within India.

SIM swap fraud

An attack where the victim's mobile number is ported to a new SIM to intercept SMS OTP; mitigations include device binding, in-app approval and a cooling period after SIM change.

Limited liability framework

RBI's tiered rule under which a customer reporting an unauthorised electronic transaction within 3 working days bears zero liability, with liability rising as reporting is delayed.

Payment data localisation

RBI's directive that full end-to-end payment transaction data be stored only in India; foreign processing is allowed if data is brought back within 24 hours and deleted abroad.

Digital signature verification

The signer encrypts the message hash with a private key; the verifier decrypts it with the public key and compares hashes, with a Certifying Authority binding the key to identity.

Banking correspondent scope

An agent model delivering basic banking at low cost; the BC may accept deposits, facilitate withdrawals and remittances and collect KYC, but cannot sanction loans or approve credit.