Updated for 2026 Syllabus Detailed Explanations High-Yield Core Concepts

Bank Promotion Exam Guide

Banking Awareness | Banking Knowledge | for all Bank Exams

Module: General Practice

Q28: Government's Direct Benefit Transfer (DBT) payouts are processed through the NACH Credit mechanism, while DBT-related transactions are processed through the …… system.

A
Aadhaar Payment Bridge (APB)
B
Real Time Gross Settlement (RTGS)
C
Immediate Payment Service (I M P S)
D
National Financial Switch (NFS)
✅ Correct Answer: A
Government DBT payouts use the NACH Credit mechanism.
Specifically, DBT-related transactions that leverage the Aadhaar number as the primary identifier are processed through the Aadhaar Payment Bridge (APB). This infrastructure is critical for social welfare delivery as noted in the RBI's Payment Systems Report - June 2025.