Digital Banking and Payment Systems
What the domain tests
Digital Banking and Payment Systems tests channels, transaction types, security and complaint handling. Expect matching services to needs and spotting fraud.
Core rules and concepts
- ATM: cash withdrawal and balance enquiry. POS: card payment at a merchant. Net banking: browser-based banking. Mobile banking: app-based banking. Wallet: a prepaid instrument. UPI: instant bank-to-bank payment using a virtual payment address or QR code.
- NEFT is a batch electronic transfer with no minimum. RTGS is real-time and for high-value transfers, with a minimum of ₹2 lakh. IMPS is immediate and available around the clock. Charges and limits vary by bank and channel.
- Authentication uses PIN, password, OTP or biometrics. OTP and PIN are confidential. A genuine bank does not ask for your OTP or PIN to reverse a transaction.
- Phishing uses fake links or emails; vishing uses phone calls; smishing uses SMS. Report unauthorised transactions quickly, block the card through official channels and keep the complaint reference. If unresolved, escalate through the bank and then the RBI Ombudsman.
- For a failed transaction, note the reference number, check status and avoid blind retries.
Worked example
A caller claims to be a bank officer and asks for the OTP sent to your phone to cancel a fraudulent debit. The correct action is to disconnect, not share the OTP, check the account through the official app, call the bank's published number, block the card if needed and record a complaint with date, time and reference. Reasoning: the OTP authorises a transaction; a genuine bank does not need it to stop fraud. Sharing it can complete the thief's transaction.
Traps that cost marks
Do not share OTP or PIN with anyone, even someone claiming to be bank staff. Do not use links from unknown messages. Do not use RTGS for a small transfer because it has a high minimum. Do not treat an SMS alert as proof of a successful transfer. Do not ignore the reference number of a failed transaction.