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RBI's Payment Systems Report - June 2025 – 73 Most Expected Questions ⏳ Updated: Jan 2026 | 🎯 73 MCQs
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Which payment system is described as having "completely transformed digital payments in India", and promoted a diversified and inclusive payments ecosystem?
Explanation:
Correct: C
The Unified Payments Interface (UPI) is credited with completely transforming digital payments in India. It has successfully promoted a diversified and inclusive payments ecosystem, enabling easy transactions for both merchants and consumers. This transformation is a central theme in the RBI's Payment Systems Report - June 2025.
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What is the primary legal foundation for the regulation and supervision of payment and settlement systems in India?
Explanation:
Correct: C
The Payments and Settlement Systems Act, 2007 (PSS Act, 2007) is the primary legal foundation for this. It provides the legal framework for the regulation and supervision of all payments and settlement systems in India by the RBI. Understanding this legal basis is essential for interpreting the RBI's Payment Systems Report - June 2025.
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Following an amendment to the PSS Act, 2007, which entity replaced the erstwhile Board for Regulation and Supervision of Payment and Settlement Systems (BPSS), effective May 2025?
Explanation:
Correct: B
An amendment to the PSS Act, 2007 became effective from May 09, 2025. This amendment replaced the erstwhile Board for Regulation and Supervision of Payment and Settlement Systems (BPSS) with the new Payments Regulatory Board (PRB). This governance shift is a critical update highlighted in the RBI's Payment Systems Report - June 2025.
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Who serves as the chairman of the Payments Regulatory Board (PRB), the designated authority for regulating payment systems, under the PSS Act, 2007?
Explanation:
Correct: D
The Payments Regulatory Board (PRB) operates under the chairmanship of the Governor, RBI. The PRB is the designated authority for the regulation and supervision of all payment systems in India under the PSS Act, 2007. This structural detail is crucial for students studying the RBI's Payment Systems Report - June 2025.
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In the decade ending 2024 (2014-2024), what was the Compound Annual Growth Rate (CAGR), for digital payments in India, in terms of volume?
Explanation:
Correct: D
During the decade ending 2024, the Compound Annual Growth Rate (CAGR) for digital payments in India was 52.5% in terms of volume. In terms of value, the CAGR was 13% for the same period. These statistical milestones are extensively documented in the RBI's Payment Systems Report - June 2025.
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Which of the following is identified as a major milestone in the evolution of India's Real Time Gross Settlement (RTGS) system?
Explanation:
Correct: A
Major milestones in the evolution of the Real Time Gross Settlement (RTGS) system include its transition to 24x7x365 availability and the adoption of the ISO 20022 message standard. This standard enhances the efficiency and data richness of transactions, as noted in the RBI's Payment Systems Report - June 2025.
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What is a key Reserve Bank of India initiative, related to the Unified Payments Interface (UPI), aimed at improving cross-border payments?
Explanation:
Correct: A
One of the RBI's key initiatives to enhance cross-border payments is the interlinking of India's Unified Payments Interface (UPI) with the fast payment systems (FPS) of other countries, such as Singapore's PayNow. This initiative is a major focus area in the RBI's Payment Systems Report - June 2025.
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During H1 2025, what percentage of the total payment volume did the Unified Payments Interface (UPI) account for?
Explanation:
Correct: A
During H1 2025, UPI accounted for the largest share of total payment volume at 84.8%. This figure is often rounded to 85% in summary reports. This high volume indicates its widespread use for small-value, everyday transactions, a trend analyzed in the RBI's Payment Systems Report - June 2025.
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During H1 2025, what percentage of the total payment value did the Real Time Gross Settlement (RTGS) system account for?
Explanation:
Correct: A
During H1 2025, the RTGS system recorded the largest share of total payment value at 68.7%. This figure is often rounded to 69% in summary reports. This highlights RTGS's role as the primary system for high-value wholesale payments and underscores Digital Payments Growth trends in the RBI's Payment Systems Report - June 2025.
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What was the share of National Electronic Funds Transfer (NEFT), in terms of total payment value, during H1 2025?
Explanation:
Correct: A
During H1 2025, NEFT's share of the total payment value was 15.1%. This positioned it as the second-largest system by value, after RTGS (approx 69%) and ahead of UPI (approx 9%). These comparative statistics are vital components of the RBI's Payment Systems Report - June 2025.
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What trend was observed in the transaction volume for paper-based instruments, including cheques, over the last three half-years (from H1-2024 to H1-2025)?
Explanation:
Correct: A
A consistent declining trend was observed. The transaction volume for paper-based instruments fell from 32 crore in H1-2024, to 30 crore in H2-2024, and further down to 29 crore in H1-2025. This shift away from paper is a key observation in the RBI's Payment Systems Report - June 2025.
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What was the daily average transaction value for Total Payments (which includes all digital and paper-based instruments), during H1-2025?
Explanation:
Correct: A
The total value of all payments in H1-2025 was ₹1572 lakh crore. This translates to a daily average transaction value of approximately ₹9 lakh crore for the period. This massive scale, driven by systems like the Unified Payments Interface (UPI) and RTGS, is documented in the RBI's Payment Systems Report - June 2025.
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How are "Retail Payments" defined, for the purpose of the payment system statistics?
Explanation:
Correct: A
For the purpose of payment system statistics, the category "Retail Payments" is defined as a combination of all "Retail Digital Payments" (like UPI, NEFT, IMPS, Cards) and "Paper-based Instruments" (like cheques). This definition is clarified in the RBI's Payment Systems Report - June 2025.
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According to the data on payment system infrastructure as of June 2025, which two categories registered a decline in their outstanding numbers, compared to December 2024?
Explanation:
Correct: C
The data on payment system infrastructure as of end-June 2025 indicates that while most systems grew, PPI wallets and Micro ATMs registered a decline in their outstanding numbers when compared with end-December 2024. This infrastructural shift is analyzed in the RBI's Payment Systems Report - June 2025.
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What is the primary purpose of Large Value Payment Systems (LVPS), also referred to as wholesale payment systems?
Explanation:
Correct: 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.
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In India, which two entities operate the Large Value Payment Systems (LVPS)?
Explanation:
Correct: C
In India, the Large Value Payment Systems (LVPS) are operated by two entities. The Reserve Bank of India (RBI) operates the Real Time Gross Settlement (RTGS) system. The Clearing Corporation of India Limited (CCIL) operates other LVPS related to government securities. This operational framework is detailed in the RBI's Payment Systems Report - June 2025.
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Who is identified as the owner and operator of India's primary large-value payment system, the Real Time Gross Settlement (RTGS)?
Explanation:
Correct: C
The Real Time Gross Settlement (RTGS) system is India's primary large-value payment system. It is owned and operated by the Reserve Bank of India (RBI). This ownership structure ensures the stability discussed in the RBI's Payment Systems Report - June 2025.
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What is the primary purpose of Retail Payment Systems?
Explanation:
Correct: 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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Retail Payment Systems are characterised by their ability to handle …… transactions efficiently.
Explanation:
Correct: B
Retail Payment Systems are characterised by their ability to efficiently handle large volumes of transactions. This contrasts with wholesale systems, which handle low volumes of very high-value transactions. This volume capability is highlighted in the RBI's Payment Systems Report - June 2025.
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Which retail payment system is specifically mentioned as enabling the disbursal of government subsidies, and Direct Benefit Transfers (DBT)?
Explanation:
Correct: A
The National Automated Clearing House (NACH) is designed for bulk and repetitive payments. It enables features like auto-debits for EMIs and auto-credits for disbursing payments like salaries, pensions, and government subsidies under DBT, as noted in the RBI's Payment Systems Report - June 2025.
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What is the upper transaction limit imposed by the Reserve Bank of India (RBI) for funds transfers through the National Electronic Funds Transfer (NEFT) system?
Explanation:
Correct: D
There is no upper limit imposed by the RBI for funds transfers through the NEFT system. However, individual member banks are permitted to place limits based on their own risk perception. This regulatory stance is clarified in the RBI's Payment Systems Report - June 2025.
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What was the total value of transactions processed by the National Electronic Funds Transfer (NEFT) system, during the first half (H1) of CY 2025?
Explanation:
Correct: A
In the first half (H1) of Calendar Year (CY) 2025, the NEFT system processed 490.5 crore transactions. The total value of these transactions amounted to ₹237.0 lakh crore. These figures are part of the detailed data tables in the RBI's Payment Systems Report - June 2025.
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What was the total volume of Unified Payments Interface (UPI) transactions recorded in the first half (H1) of CY 2025?
Explanation:
Correct: A
In the first half (H1) of Calendar Year (CY) 2025, the total volume (number of transactions) recorded for the Unified Payments Interface (UPI) stood at 10,637 crore. This immense volume is a testament to the success of digital adoption cited in the RBI's Payment Systems Report - June 2025.
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What is the individual transaction limit for the Immediate Payment Service (I M P S) across all channels, except for SMS and IVR?
Explanation:
Correct: C
The individual transaction limit for the Immediate Payment Service (IMPS) is ₹5 lakh. This limit applies to all channels such as mobile banking and internet banking, but excludes SMS and IVR channels. This limit is an important operational detail in the RBI's Payment Systems Report - June 2025.
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How did the total transaction value of the Immediate Payment Service (I M P S) change, during the period from Calendar Year (CY) 2019 to CY 2024?
Explanation:
Correct: C
The total transaction value for IMPS demonstrated significant growth. It tripled during the period from CY 2019 (when it was ₹21.8 lakh crore) to CY 2024 (when it reached ₹70.7 lakh crore). This growth trajectory is plotted in the RBI's Payment Systems Report - June 2025.
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What is the Aadhaar-enabled Payment System (AePS)?
Explanation:
Correct: A
AePS (Aadhaar-enabled Payment System) is a bank-led model designed for financial inclusion. It facilitates online, interoperable financial transactions at Point of Sale (Micro ATM) terminals using Aadhaar authentication. Its role in inclusion is emphasized in the RBI's Payment Systems Report - June 2025.
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Which of the following statements correctly describe the NACH transaction types?
Explanation:
Correct: A
Statements 1 and 2 are correct. NACH Credit (One-to-Many) involves a single debit for multiple credits (salaries, subsidies). NACH Debit (Many-to-One) involves multiple debits for a single credit (EMIs, bills). Understanding these flows is key to the technical analysis in the RBI's Payment Systems Report - June 2025.
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Government's Direct Benefit Transfer (DBT) payouts are processed through the NACH Credit mechanism, while DBT-related transactions are processed through the …… system.
Explanation:
Correct: 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.
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What technology does the National Electronic Toll Collection (NETC) system use, to enable electronic payments at toll plazas, without the vehicle stopping?
Explanation:
Correct: A
The National Electronic Toll Collection (NETC) system, popularly known as FASTag, uses Radio Frequency Identification (RFID) technology. This enables electronic payment deduction from a linked prepaid account, a process reviewed for efficiency in the RBI's Payment Systems Report - June 2025.
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What was the total number of outstanding FASTags issued as of June 2025?
Explanation:
Correct: A
The issuance of FASTags has seen significant growth over the years. As of June 2025, the total number of outstanding FASTags issued reached 11.11 crore. This statistic highlights the widespread adoption of electronic tolling in the RBI's Payment Systems Report - June 2025.
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How many toll plazas were onboarded to the National Electronic Toll Collection (NETC) infrastructure, as of June 2025?
Explanation:
Correct: A
The number of toll plazas onboarded to the NETC infrastructure grew significantly. As of June 2025, 1,782 toll plazas were part of the system. This expansion of infrastructure is a key metric tracked in the RBI's Payment Systems Report - June 2025.
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What is the Bharat Bill Payment System (BBPS)?
Explanation:
Correct: A
The Bharat Bill Payment System (BBPS) is an RBI-mandated system. It serves as a reliable, secure, and integrated platform that allows customers to make various bill payments across the country through a single interface. Its definition is standard in the RBI's Payment Systems Report - June 2025.
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Which entity operates the Bharat Bill Payment System (BBPS)?
Explanation:
Correct: A
The BBPS is operated by NPCI Bharat BillPay Ltd. (NBBL). NBBL is a wholly owned subsidiary of the National Payments Corporation of India (NPCI) and is dedicated to managing the operations of the BBPS. This corporate structure is relevant to the RBI's Payment Systems Report - June 2025.
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As of June 2025, what was the total number of outstanding debit cards in India?
Explanation:
Correct: A
As of June 2025, India had a total of 111.64 crore outstanding cards. This total was comprised of 100.52 crore debit cards and 11.12 crore credit cards. These card statistics are essential data points in the RBI's Payment Systems Report - June 2025.
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What was the total value of credit card transactions recorded in Calendar Year (CY) 2024?
Explanation:
Correct: A
The value of credit card transactions has seen significant growth. It rose substantially from ₹7.1 lakh crore in CY 2019 to ₹20.4 lakh crore in CY 2024. This growth in credit consumption is analyzed in the RBI's Payment Systems Report - June 2025.
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Which bank group experienced a steep decline in its share of outstanding credit cards, from 11.7 per cent in June 2020, to 4.1 per cent in June 2025?
What was the market share of Private Sector Banks in outstanding credit cards, as of June 2025?
What trend was observed in debit card transactions from Calendar Year (CY) 2019 to CY 2024?
Which bank group dominates the debit card space, holding 63.5 per cent of outstanding cards as of June 2025, even though its market share has declined since 2020?
What is the primary function of Card-on-File Tokenisation (CoFT), as introduced by the Reserve Bank of India in 2021?
As per the March 2024 instructions, what choice must card issuers (with over 10 lakh active cards) provide to their eligible customers, at the time of issue or renewal?
What was the primary objective of launching the Payments Infrastructure Development Fund (PIDF) in January 2021?
To encourage the use of UPI Lite, what were the per-transaction and total limits enhanced to, in December 2024?
In February 2025, which category of banks was newly permitted to offer pre-sanctioned credit lines on UPI?
In December 2024, the Additional Factor of Authentication (AFA) exemption limit for e-mandates was increased to ₹1 lakh, for which specific categories of recurring transactions?
As a major regulatory development in H1 2025, what change was made regarding UPI transaction limits?
Following the regulatory developments in H1 2025 that allowed NPCI to set P2M limits,
what is the transaction limit for Person to Person (P2P) payments in UPI?
what is the transaction limit for Person to Person (P2P) payments in UPI?
RTGS is designated as a Financial Market Infrastructure (FMI) and a Systematically Important Payment System (SIPS). What other designation does it hold?
What is the minimum amount that can be transferred for a customer transaction through the RTGS system?
What are the minimum and maximum limits for interbank transactions within the RTGS system?
The RTGS system uses the Structured Financial Messaging System (SFMS) over which secure network for transferring messages?
What is a primary benefit of the ISO 20022 messaging standard used in financial systems?
On what date did the Real Time Gross Settlement (RTGS) system become available on a $24\times7\times365$ basis?
In CY 2024, what percentage of the total volume of RTGS transactions was conducted outside regular business hours (18:00 to 08:00)?
What is the "positive confirmation" feature in the Real Time Gross Settlement (RTGS) system?
What is the "Gridlock Resolution Mechanism" in the Real Time Gross Settlement (RTGS) system?
Approximately what percentage of all digital transactions in India, by value, does the Real Time Gross Settlement (RTGS) system settle?
What is the focus of Project Hertha, an initiative by the BIS Innovation Hub?
What does Project Mandala, an initiative by the BIS Innovation Hub, assess?
What is Project Nexus, an international initiative joined by India?
Which country was the top recipient of global foreign remittances in 2024, with a record inflow of $137.7 billion?
Which country consistently leads global remittance outflows, sending $98.4 billion in 2024?
What is the target set by the UN Sustainable Development Goals (SDG) and the G20 for the global average remittance cost to be reached by 2030?
According to data from Q4 2024, which region of the world was the most expensive to send a $200 remittance to, with an average cost of 8.45%?
According to data from Q4 2024, which region of the world offered the lowest remittance transaction costs, with an average of 5.01% for sending $200?
Which corridor was identified as the most cost-effective for sending a $200 remittance to India in Q4 2024, with a rate of 2.10%?
When was the Real Time Gross Settlement (RTGS) system, India's large-value payment system, launched?
Which payment system is described as being designed for bulk and repetitive payments, such as salary disbursements, pension payments, utility bill payments, and loan EMIs?
Which payment system, introduced by NPCI, offers 24x7 instant fund transfer through multiple channels including mobile banking, internet banking, and ATMs?
In which year was the Unified Payments Interface (UPI) launched?
What is the maximum value allowed for a Gift Prepaid Payment Instrument (PPI)?
What is the maximum value for a reloadable Prepaid Payment Instrument (PPI) issued by Mass Transit Systems (MTS) operators?
What is the primary purpose of the Trade Receivables Discounting System (TReDS)?
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Final Score: 0/73
RBI’s Payment Systems Report – June 2025 is the definitive source for current trends in the Indian financial landscape. In this comprehensive guide, we cover the 73 most critical questions derived directly from the official report. This resource is specifically designed for aspirants of RBI Grade B, SBI PO, IBPS PO, and RBI Assistant exams to help you secure maximum marks in the General Awareness and Finance sections.
Why This [Primary KeywordTest Matters?
Exam Weightage: For RBI Grade B, this report is crucial for both Phase 1 (GA) and Phase 2 (Finance & Management). For SBI PO and IBPS PO, data from this report frequently appears in the Mains General Economy section.
Difficulty: Moderate to Hard (Data-Intensive).
Practice [Primary Keyword(Live Mock Test)
Quick Revision: Key Facts for RBI’s Payment Systems Report – June 2025
Digital Growth: Digital payments volume CAGR (2014-24) stands at 52.5%.
UPI Dominance: UPI accounted for 84.8% of total payment volume in H1 2025.
RTGS Value: RTGS handled 68.7% of total payment value in H1 2025.
New Regulator: Payments Regulatory Board (PRB) replaced BPSS in May 2025.
NEFT Limits: No RBI-imposed upper limit for NEFT transactions.
Remittance: India received a record $137.7 billion in remittances in 2024.
FASTag: Over 11.11 crore FASTags issued as of June 2025.
Card Trends: Credit card transaction value hit ₹20.4 lakh crore in CY 2024.
Frequently Asked Questions
Why is the RBI’s Payment Systems Report – June 2025 important for exams?
It contains the latest data on UPI, RTGS, and NEFT, which are high-probability topics for the General Awareness section of RBI Grade B and SBI PO exams.
What is the most important finding in the RBI’s Payment Systems Report – June 2025?
The massive 52.5% CAGR in digital payment volumes and the dominance of UPI (85% volume share) are the most critical findings.
Does the report cover new regulatory bodies?
Yes, the RBI’s Payment Systems Report – June 2025 highlights the establishment of the Payments Regulatory Board (PRB) replacing the BPSS.
Are the statistics for H1 2025 or the full year?
The report primarily analyzes data for the first half (H1) of 2025 and the preceding decade ending 2024.