Q18: What is the primary purpose of Retail Payment Systems?

To facilitate large-value, high-priority interbank settlements

To exclusively process government securities and forex clearing

To process routine, low- to medium-value transactions, like bill payments and fund transfers

To manage only paper-based instruments like cheques

✅ Correct Answer: C

Retail Payment Systems are designed to process routine transactions of low to medium value.

This includes common activities like bill payments, purchases of goods and services, and fund transfers.

The growth of these systems is a key metric in the RBI's Payment Systems Report - June 2025.

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