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 Keyword] Test 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).
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RBI’s Payment Systems Report – June 2025 – 73 Most Expected Questions
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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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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?
11.7 per cent in June 2020, to
4.1 per cent in June 2025?
Explanation
Correct: C
Foreign Banks witnessed a steep decline in their market share of outstanding credit cards. Their share fell significantly from 11.7 per cent in June 2020 to just 4.1 per cent in June 2025, a trend attributed to market consolidation in the RBI’s Payment Systems Report – June 2025.
Foreign Banks witnessed a steep decline in their market share of outstanding credit cards. Their share fell significantly from 11.7 per cent in June 2020 to just 4.1 per cent in June 2025, a trend attributed to market consolidation in the RBI’s Payment Systems Report – June 2025.
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What was the market share of Private Sector Banks in outstanding credit cards, as of June 2025?
Explanation
Correct: A
Private Sector Banks increased their dominance in the credit card space. Their market share grew from 65.8 per cent in June 2020 to 70.8 per cent as of June 2025. This market dominance is a key finding in the RBI’s Payment Systems Report – June 2025.
Private Sector Banks increased their dominance in the credit card space. Their market share grew from 65.8 per cent in June 2020 to 70.8 per cent as of June 2025. This market dominance is a key finding in the RBI’s Payment Systems Report – June 2025.
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What trend was observed in debit card transactions from Calendar Year (CY) 2019 to CY 2024?
Explanation
Correct: A
Debit card transactions have witnessed a decline since 2019, both in terms of volume and value. The volume declined from 495.32 crore in CY 2019 to 173.80 crore in CY 2024, largely due to the rise of UPI. This shift is documented in the RBI’s Payment Systems Report – June 2025.
Debit card transactions have witnessed a decline since 2019, both in terms of volume and value. The volume declined from 495.32 crore in CY 2019 to 173.80 crore in CY 2024, largely due to the rise of UPI. This shift is documented in the RBI’s Payment Systems Report – June 2025.
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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?
63.5 per cent of outstanding cards as of June 2025, even though its market share has declined since 2020?
Explanation
Correct: B
Public Sector Banks (PSBs) dominate the debit card space, holding 63.5 per cent of all outstanding cards as of June 2025. This dominance is due to their large customer base, a demographic factor noted in the RBI’s Payment Systems Report – June 2025.
Public Sector Banks (PSBs) dominate the debit card space, holding 63.5 per cent of all outstanding cards as of June 2025. This dominance is due to their large customer base, a demographic factor noted in the RBI’s Payment Systems Report – June 2025.
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What is the primary function of Card-on-File Tokenisation (CoFT), as introduced by the Reserve Bank of India in 2021?
Explanation
Correct: A
Card-on-file tokenisation (CoFT) was introduced by the RBI to enhance security. Its primary function is to replace the actual card details with a unique alternate code called a ‘token’, preventing the storage of sensitive data. This security measure is praised in the RBI’s Payment Systems Report – June 2025.
Card-on-file tokenisation (CoFT) was introduced by the RBI to enhance security. Its primary function is to replace the actual card details with a unique alternate code called a ‘token’, preventing the storage of sensitive data. This security measure is praised in the RBI’s Payment Systems Report – June 2025.
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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?
Explanation
Correct: A
In March 2024, the RBI issued instructions requiring large card issuers to provide their eligible customers with an option to choose from multiple card networks (e.g., Visa, Mastercard, RuPay). This consumer-centric policy is highlighted in the RBI’s Payment Systems Report – June 2025.
In March 2024, the RBI issued instructions requiring large card issuers to provide their eligible customers with an option to choose from multiple card networks (e.g., Visa, Mastercard, RuPay). This consumer-centric policy is highlighted in the RBI’s Payment Systems Report – June 2025.
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What was the primary objective of launching the Payments Infrastructure Development Fund (PIDF) in January 2021?
Explanation
Correct: A
The PIDF was launched in January 2021 with the primary objective of boosting payment acceptance infrastructure in underserved areas, specifically Tier-3 to Tier-6 centres, the North-Eastern Region, and Jammu & Kashmir. This inclusion initiative is tracked in the RBI’s Payment Systems Report – June 2025.
The PIDF was launched in January 2021 with the primary objective of boosting payment acceptance infrastructure in underserved areas, specifically Tier-3 to Tier-6 centres, the North-Eastern Region, and Jammu & Kashmir. This inclusion initiative is tracked in the RBI’s Payment Systems Report – June 2025.
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To encourage the use of UPI Lite, what were the per-transaction and total limits enhanced to, in December 2024?
Explanation
Correct: A
To encourage the adoption of UPI Lite, the limits were enhanced in December 2024. The per-transaction limit was increased to ₹1,000, and the total limit was increased to ₹5,000. These regulatory enhancements are detailed in the RBI’s Payment Systems Report – June 2025.
To encourage the adoption of UPI Lite, the limits were enhanced in December 2024. The per-transaction limit was increased to ₹1,000, and the total limit was increased to ₹5,000. These regulatory enhancements are detailed in the RBI’s Payment Systems Report – June 2025.
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In February 2025, which category of banks was newly permitted to offer pre-sanctioned credit lines on UPI?
Explanation
Correct: A
Initially limited to Scheduled Commercial Banks, the facility to link pre-sanctioned credit lines to UPI was extended in February 2025 to include Small Finance Banks (SFBs). This expansion of credit access is a key update in the RBI’s Payment Systems Report – June 2025.
Initially limited to Scheduled Commercial Banks, the facility to link pre-sanctioned credit lines to UPI was extended in February 2025 to include Small Finance Banks (SFBs). This expansion of credit access is a key update in the RBI’s Payment Systems Report – June 2025.
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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?
Explanation
Correct: A
In December 2024, the AFA exemption limit for e-mandates was increased to ₹1 lakh for three specific categories: mutual fund subscriptions, insurance premium payments, and credit card bill payments. This policy change facilitates ease of payments as noted in the RBI’s Payment Systems Report – June 2025.
In December 2024, the AFA exemption limit for e-mandates was increased to ₹1 lakh for three specific categories: mutual fund subscriptions, insurance premium payments, and credit card bill payments. This policy change facilitates ease of payments as noted in the RBI’s Payment Systems Report – June 2025.
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As a major regulatory development in H1 2025, what change was made regarding UPI transaction limits?
Explanation
Correct: A
In a major development in H1 2025, the NPCI was permitted by the RBI to prescribe and subsequently revise transaction limits for all Person to Merchant (P2M) transactions. This flexibility is a significant regulatory shift discussed in the RBI’s Payment Systems Report – June 2025.
In a major development in H1 2025, the NPCI was permitted by the RBI to prescribe and subsequently revise transaction limits for all Person to Merchant (P2M) transactions. This flexibility is a significant regulatory shift discussed in the RBI’s Payment Systems Report – June 2025.
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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?
Explanation
Correct: A
While NPCI was permitted to set limits for P2M transactions, the existing cap for P2P (Person to Person) transactions remained unchanged at ₹1 lakh. This distinction ensures consumer protection as highlighted in the RBI’s Payment Systems Report – June 2025.
While NPCI was permitted to set limits for P2M transactions, the existing cap for P2P (Person to Person) transactions remained unchanged at ₹1 lakh. This distinction ensures consumer protection as highlighted in the RBI’s Payment Systems Report – June 2025.
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RTGS is designated as a Financial Market Infrastructure (FMI) and a Systematically Important Payment System (SIPS). What other designation does it hold?
Explanation
Correct: A
RTGS holds multiple critical designations. In addition to being an FMI and SIPS, it is also designated as a “critical information infrastructure” by the National Critical Information Infrastructure Protection Centre (NCIIPC). This security status is reiterated in the RBI’s Payment Systems Report – June 2025.
RTGS holds multiple critical designations. In addition to being an FMI and SIPS, it is also designated as a “critical information infrastructure” by the National Critical Information Infrastructure Protection Centre (NCIIPC). This security status is reiterated in the RBI’s Payment Systems Report – June 2025.
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What is the minimum amount that can be transferred for a customer transaction through the RTGS system?
Explanation
Correct: A
RTGS is intended for high-value transactions. For customer transactions, the minimum amount that can be transferred through the RTGS system is ₹2,00,000. This threshold differentiates it from retail systems in the RBI’s Payment Systems Report – June 2025.
RTGS is intended for high-value transactions. For customer transactions, the minimum amount that can be transferred through the RTGS system is ₹2,00,000. This threshold differentiates it from retail systems in the RBI’s Payment Systems Report – June 2025.
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What are the minimum and maximum limits for interbank transactions within the RTGS system?
Explanation
Correct: A
The minimum limit of ₹2,00,000 applies only to customer transactions. For interbank transactions conducted through RTGS, there are no minimum or maximum limits imposed. This liquidity feature is essential for banking operations described in the RBI’s Payment Systems Report – June 2025.
The minimum limit of ₹2,00,000 applies only to customer transactions. For interbank transactions conducted through RTGS, there are no minimum or maximum limits imposed. This liquidity feature is essential for banking operations described in the RBI’s Payment Systems Report – June 2025.
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The RTGS system uses the Structured Financial Messaging System (SFMS) over which secure network for transferring messages?
Explanation
Correct: A
The RTGS system uses SFMS for transferring messages. This messaging occurs over the Indian Financial Network (INFINET), which is a secure and closed network. This infrastructure ensures the integrity of payments mentioned in the RBI’s Payment Systems Report – June 2025.
The RTGS system uses SFMS for transferring messages. This messaging occurs over the Indian Financial Network (INFINET), which is a secure and closed network. This infrastructure ensures the integrity of payments mentioned in the RBI’s Payment Systems Report – June 2025.
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What is a primary benefit of the ISO 20022 messaging standard used in financial systems?
Explanation
Correct: 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.
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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On what date did the Real Time Gross Settlement (RTGS) system become available on a \times7\times365$ basis?
Explanation
Correct: A
The RTGS system was made available on a \times7\times365$ basis with effect from December 14, 2020. This move was aimed at facilitating large-value payments round-the-clock, a milestone recorded in the RBI’s Payment Systems Report – June 2025.
The RTGS system was made available on a \times7\times365$ basis with effect from December 14, 2020. This move was aimed at facilitating large-value payments round-the-clock, a milestone recorded in the RBI’s Payment Systems Report – June 2025.
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In CY 2024, what percentage of the total volume of RTGS transactions was conducted outside regular business hours (18:00 to 08:00)?
Explanation
Correct: A
By Calendar Year (CY) 2024, the share of RTGS transactions conducted outside regular business hours had increased to 19 per cent in terms of volume. This usage pattern reflects the success of 24×7 availability noted in the RBI’s Payment Systems Report – June 2025.
By Calendar Year (CY) 2024, the share of RTGS transactions conducted outside regular business hours had increased to 19 per cent in terms of volume. This usage pattern reflects the success of 24×7 availability noted in the RBI’s Payment Systems Report – June 2025.
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What is the “positive confirmation” feature in the Real Time Gross Settlement (RTGS) system?
Explanation
Correct: A
“Positive confirmation” is a feature where the beneficiary’s bank sends an acknowledgement message to the remitter’s bank confirming the credit. This feature enhances transparency and trust, as described in the RBI’s Payment Systems Report – June 2025.
“Positive confirmation” is a feature where the beneficiary’s bank sends an acknowledgement message to the remitter’s bank confirming the credit. This feature enhances transparency and trust, as described in the RBI’s Payment Systems Report – June 2025.
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What is the “Gridlock Resolution Mechanism” in the Real Time Gross Settlement (RTGS) system?
Explanation
Correct: A
The “Gridlock Resolution Mechanism” is an automated feature in RTGS. It identifies transactions pending due to insufficient liquidity and settles them by using multilateral netting. This efficiency mechanism is explained in the RBI’s Payment Systems Report – June 2025.
The “Gridlock Resolution Mechanism” is an automated feature in RTGS. It identifies transactions pending due to insufficient liquidity and settles them by using multilateral netting. This efficiency mechanism is explained in the RBI’s Payment Systems Report – June 2025.
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Approximately what percentage of all digital transactions in India, by value, does the Real Time Gross Settlement (RTGS) system settle?
Explanation
Correct: A
RTGS settles approximately 70% of all digital transactions in India when measured by value. This figure highlights its critical role as the nation’s wholesale payment system, handling the majority of high-value payments, as per the RBI’s Payment Systems Report – June 2025.
RTGS settles approximately 70% of all digital transactions in India when measured by value. This figure highlights its critical role as the nation’s wholesale payment system, handling the majority of high-value payments, as per the RBI’s Payment Systems Report – June 2025.
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What is the focus of Project Hertha, an initiative by the BIS Innovation Hub?
Explanation
Correct: A
Project Hertha is an initiative by the BIS Innovation Hub focused on examining the use of advanced network analytics to detect financial crime in real time. This international collaboration is relevant to the RBI’s Payment Systems Report – June 2025.
Project Hertha is an initiative by the BIS Innovation Hub focused on examining the use of advanced network analytics to detect financial crime in real time. This international collaboration is relevant to the RBI’s Payment Systems Report – June 2025.
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What does Project Mandala, an initiative by the BIS Innovation Hub, assess?
Explanation
Correct: A
Project Mandala assesses the feasibility of embedding jurisdiction-specific regulatory requirements directly into a common protocol. This aims to automate compliance and simplify cross-border payments, a trend discussed in the RBI’s Payment Systems Report – June 2025.
Project Mandala assesses the feasibility of embedding jurisdiction-specific regulatory requirements directly into a common protocol. This aims to automate compliance and simplify cross-border payments, a trend discussed in the RBI’s Payment Systems Report – June 2025.
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What is Project Nexus, an international initiative joined by India?
Explanation
Correct: A
Project Nexus aims to create a blueprint for interlinking domestic Fast Payment Systems (FPSs) from multiple countries to enable instant cross-border retail payments. India’s participation is a key highlight in the RBI’s Payment Systems Report – June 2025.
Project Nexus aims to create a blueprint for interlinking domestic Fast Payment Systems (FPSs) from multiple countries to enable instant cross-border retail payments. India’s participation is a key highlight in the RBI’s Payment Systems Report – June 2025.
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Which country was the top recipient of global foreign remittances in 2024, with a record inflow of 7.7 billion?
Explanation
Correct: A
India remains the top recipient of global foreign remittances. In 2024, it recorded a record inflow of 7.7 billion. This massive inflow underscores India’s position in the global economy as detailed in the RBI’s Payment Systems Report – June 2025.
India remains the top recipient of global foreign remittances. In 2024, it recorded a record inflow of 7.7 billion. This massive inflow underscores India’s position in the global economy as detailed in the RBI’s Payment Systems Report – June 2025.
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Which country consistently leads global remittance outflows, sending .4 billion in 2024?
Explanation
Correct: A
The United States consistently leads the world in global remittance outflows. In 2024, the US was the source of .4 billion in remittance payments. This global context is provided in the RBI’s Payment Systems Report – June 2025.
The United States consistently leads the world in global remittance outflows. In 2024, the US was the source of .4 billion in remittance payments. This global context is provided in the RBI’s Payment Systems Report – June 2025.
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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?
Explanation
Correct: A
The UN SDGs and the G20 have set a target to reduce the global average cost of remittances to 3 per cent by 2030. This goal drives many of the efficiency measures discussed in the RBI’s Payment Systems Report – June 2025.
The UN SDGs and the G20 have set a target to reduce the global average cost of remittances to 3 per cent by 2030. This goal drives many of the efficiency measures discussed in the RBI’s Payment Systems Report – June 2025.
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According to data from Q4 2024, which region of the world was the most expensive to send a 0 remittance to, with an average cost of
8.45%?
8.45%?
Explanation
Correct: A
Sub-Saharan Africa remained the most expensive region in the world to send remittances to. In Q4 2024, the average cost was 8.45 per cent, a disparity highlighted in the global analysis within the RBI’s Payment Systems Report – June 2025.
Sub-Saharan Africa remained the most expensive region in the world to send remittances to. In Q4 2024, the average cost was 8.45 per cent, a disparity highlighted in the global analysis within the RBI’s Payment Systems Report – June 2025.
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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 0?
5.01% for sending 0?
Explanation
Correct: A
South Asia continues to be the region with the lowest remittance transaction costs globally. In Q4 2024, the average cost was 5.01 per cent. This efficiency is partly due to systems like UPI mentioned in the RBI’s Payment Systems Report – June 2025.
South Asia continues to be the region with the lowest remittance transaction costs globally. In Q4 2024, the average cost was 5.01 per cent. This efficiency is partly due to systems like UPI mentioned in the RBI’s Payment Systems Report – June 2025.
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Which corridor was identified as the most cost-effective for sending a 0 remittance to India in Q4 2024, with a rate of
2.10%?
2.10%?
Explanation
Correct: A
The corridor from Kuwait to India was identified as the most cost-effective for sending remittances to India in Q4 2024, with a rate of 2.10 per cent. This specific corridor data is part of the remittance analysis in the RBI’s Payment Systems Report – June 2025.
The corridor from Kuwait to India was identified as the most cost-effective for sending remittances to India in Q4 2024, with a rate of 2.10 per cent. This specific corridor data is part of the remittance analysis in the RBI’s Payment Systems Report – June 2025.
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When was the Real Time Gross Settlement (RTGS) system, India’s large-value payment system, launched?
Explanation
Correct: A
The Real Time Gross Settlement (RTGS) system, India’s large-value payment system operated by the RBI, was launched in the year 2004. This historical context is essential for understanding the evolution traced in the RBI’s Payment Systems Report – June 2025.
The Real Time Gross Settlement (RTGS) system, India’s large-value payment system operated by the RBI, was launched in the year 2004. This historical context is essential for understanding the evolution traced in the RBI’s Payment Systems Report – June 2025.
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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?
Explanation
Correct: A
The National Automated Clearing House (NACH) is designed specifically for handling bulk and repetitive payments like salaries and pensions. Its utility is a key operational detail in the RBI’s Payment Systems Report – June 2025.
The National Automated Clearing House (NACH) is designed specifically for handling bulk and repetitive payments like salaries and pensions. Its utility is a key operational detail in the RBI’s Payment Systems Report – June 2025.
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Which payment system, introduced by NPCI, offers 24×7 instant fund transfer through multiple channels including mobile banking, internet banking, and ATMs?
Explanation
Correct: A
The Immediate Payment Service (IMPS), introduced by NPCI, is a 24×7 fast payment system offering instant fund transfers through various channels. Its role in 24×7 banking is highlighted in the RBI’s Payment Systems Report – June 2025.
The Immediate Payment Service (IMPS), introduced by NPCI, is a 24×7 fast payment system offering instant fund transfers through various channels. Its role in 24×7 banking is highlighted in the RBI’s Payment Systems Report – June 2025.
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In which year was the Unified Payments Interface (UPI) launched?
Explanation
Correct: A
The Unified Payments Interface (UPI), which has transformed the digital payments landscape in India, was launched in the year 2016. This milestone is the starting point for the digital revolution analyzed in the RBI’s Payment Systems Report – June 2025.
The Unified Payments Interface (UPI), which has transformed the digital payments landscape in India, was launched in the year 2016. This milestone is the starting point for the digital revolution analyzed in the RBI’s Payment Systems Report – June 2025.
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What is the maximum value allowed for a Gift Prepaid Payment Instrument (PPI)?
Explanation
Correct: A
Gift PPIs are classified as non-reloadable instruments. As per regulatory guidelines, the maximum value for any single Gift PPI is capped at ₹10,000. These limits are part of the regulatory framework detailed in the RBI’s Payment Systems Report – June 2025.
Gift PPIs are classified as non-reloadable instruments. As per regulatory guidelines, the maximum value for any single Gift PPI is capped at ₹10,000. These limits are part of the regulatory framework detailed in the RBI’s Payment Systems Report – June 2025.
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What is the maximum value for a reloadable Prepaid Payment Instrument (PPI) issued by Mass Transit Systems (MTS) operators?
Explanation
Correct: A
PPIs issued by Mass Transit Systems (PPI-MTS), such as metro rail cards, are reloadable instruments with a maximum outstanding value capped at ₹3,000. This niche instrument is covered in the RBI’s Payment Systems Report – June 2025.
PPIs issued by Mass Transit Systems (PPI-MTS), such as metro rail cards, are reloadable instruments with a maximum outstanding value capped at ₹3,000. This niche instrument is covered in the RBI’s Payment Systems Report – June 2025.
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What is the primary purpose of the Trade Receivables Discounting System (TReDS)?
Explanation
Correct: A
The Trade Receivables Discounting System (TReDS) is an institutional mechanism set up to facilitate the financing of trade receivables for MSMEs. Its role in supporting small businesses is a policy highlight in the RBI’s Payment Systems Report – June 2025.
The Trade Receivables Discounting System (TReDS) is an institutional mechanism set up to facilitate the financing of trade receivables for MSMEs. Its role in supporting small businesses is a policy highlight in the RBI’s Payment Systems Report – June 2025.
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⚡ 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.