Q15: What is the primary purpose of Large Value Payment Systems (LVPS), also referred to as wholesale payment systems?

To process a high volume of small-value retail purchases

To facilitate large value and high-priority payments, such as money market, and interbank settlements

To exclusively handle cross-border remittances for individuals

To manage paper-based cheque clearing across the country

✅ Correct Answer: B

Large Value Payment Systems (LVPS), or wholesale payment systems, are designed to facilitate large value and high-priority payments.

Their primary use is for money market, securities market, and interbank settlements.

This distinction is fundamental to the RBI's Payment Systems Report - June 2025.

Bank Promotion Exam Guide