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Module: General Practice

Q52: What is a primary benefit of the ISO 20022 messaging standard used in financial systems?

A
It enables straight-through processing (STP), which streamlines transactions and lowers operational costs
B
It restricts payment systems to operate only during business hours
C
It eliminates the need for any interbank settlement
D
It is an older standard used exclusively for paper-based clearing
✅ Correct Answer: A
The ISO 20022 messaging standard enables high levels of Straight-Through Processing (STP), which automates transactions and lowers operational costs.
Its adoption is a technological advancement cited in the RBI's Payment Systems Report - June 2025.
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