Management Information Systems · One-liners

1 Cardholder — Role / Banking Example?

Role: The individual holding the credit card and bearing the legal obligation to repay the issuer.; Banking Example: A salaried customer of HDFC Bank using an HDFC Regalia card.

2 Merchant / Retailer — Role / Banking Example?

Role: Business entity accepting card payment for goods / services.; Banking Example: Amazon, Reliance Retail, a hospital, a petrol pump.

3 Acquiring Bank — Role / Banking Example?

Role: Bank that on-boards the merchant on its POS / payment-gateway infrastructure and processes the card transaction.; Banking Example: Axis Bank acquiring a Croma store on its POS.

4 Clearing Network — Role / Banking Example?

Role: Card scheme / payment processor that routes transaction data between acquirer and issuer.; Banking Example: Visa, Mastercard, RuPay, American Express.

5 Issuing Bank — Role / Banking Example?

Role: Bank / NBFC that issues the card to the customer and bears the credit risk on the outstanding.; Banking Example: SBI Card issuing an SBI SimplyCLICK card.

6 Proprietary Credit Cards — Definition / Example?

Definition: Issued directly by a financial institution under its own brand; the issuer owns the customer relationship, terms and servicing.; Example: HDFC MoneyBack, SBI SimplyCLICK, Axis ACE.

7 Co-branded Credit Cards — Definition / Example?

Definition: Joint product of a financial institution and a retailer / airline / e-commerce / hospitality partner; both logos appear on the face; benefits skewed to the partner's ecosystem.; Example: Amazon Pay ICICI, Flipkart Axis Bank, IRCTC SBI Card, Tata Neu HDFC.

8 Identity Proof?

Passport, PAN Card, Aadhaar / UID, Driving Licence, Voter ID.

9 Income Proof?

Latest ITR, Form 16, 3-month salary slips (govt / PSU / private), audited financials (for self-employed).

10 Address Proof?

Passport, recent electricity / telephone bill, Aadhaar, bank passbook of a PSU bank.

11 Photograph + PAN copy?

One recent colour photograph and a self-attested PAN photocopy.

12 Bank Statement?

Last 3 months' statement of the primary salary / business account.

13 Joining Fee — Definition / Current Rule / Indicative Range?

Definition / Current Rule: One-time charge at issuance; many entry-level cards are 'lifetime free' as a marketing strategy.; Indicative Range: ₹0 to ₹10,000

14 Annual Fee — Definition / Current Rule / Indicative Range?

Definition / Current Rule: Recurring fee on each card-anniversary; often waived if annual spend exceeds a threshold (e.g. ₹3 lakh).; Indicative Range: ₹0 to ₹10,000

15 Finance Charges — Definition / Current Rule / Indicative Range?

Definition / Current Rule: Interest on revolving balance when full payment is not made by the due date — calculated daily from the transaction date.; Indicative Range: ₹2.50 % – ₹3.99 % per month (approx. 30 % – 48 % p.a.)

16 Minimum Amount Due (MAD) — Definition / Current Rule / Indicative Range?

Definition / Current Rule: Smallest sum the cardholder must pay to remain in 'good standing'; = New debits + previous unpaid MAD + over-limit charges + fees + minimum % of outstanding. Floor lowered to 5% (March 2024).; Indicative Range: 5 % – 10 % of outstanding

17 Interest-Free / Grace Period — Definition / Current Rule / Indicative Range?

Definition / Current Rule: Window from statement date to due date during which full payment avoids interest. Varies by issuer and statement-cycle date.; Indicative Range: 20 – 50 days

18 Annualised Percentage Rate (APR) — Definition / Current Rule / Indicative Range?

Definition / Current Rule: Effective annual interest rate including fees — RBI's transparency rule (March 2024) mandates APR disclosure on the application form and statement.; Indicative Range: Typically 36% – 48% p.a.

19 Cash Advance Fee — Definition / Current Rule / Indicative Range?

Definition / Current Rule: Charge for ATM withdrawal on a credit card — usually 2.5% of amount, minimum ₹500 + interest from Day 1 (no grace period).; Indicative Range: 2.5% – 3.5%, min ₹500

20 What is Prepaid Payment Instrument (PPI)?

is a financial instrument that permits a holder to load funds in advance, store the value, and use it for purchases, bill payments, remittances and similar transactions.

21 Closed System PPI — Where Usable / Cash-out / Fund Transfer?

Where Usable: Only at the issuer's own outlets or its designated merchants; issued by a company without RBI authorisation. Used for gift cards, meal vouchers, transit passes, in-app credits.; Cash-out / Fund Transfer: No cash withdrawal, no fund transfer.

22 Semi-Closed PPI — Where Usable / Cash-out / Fund Transfer?

Where Usable: Across multiple merchant establishments that have a contract with the PPI issuer. Issued by RBI-authorised entities only. Examples: Paytm Wallet, Amazon Pay Wallet.; Cash-out / Fund Transfer: Cash withdrawal not permitted; funds loaded cannot be withdrawn, but P2P transfer permitted…

23 Open System PPI — Where Usable / Cash-out / Fund Transfer?

Where Usable: Issued by banks in tie-up with Visa / Mastercard / RuPay; can be used at any merchant accepting that card network.; Cash-out / Fund Transfer: Cash withdrawal from ATM permitted; fund transfer permitted within prescribed limits.

24 Stored Value Cards?

Also called prepaid / value-added cards. Carry a magnetic stripe or chip in which the stored value is held. Example: shopping mall gift cards.

25 Re-loadable Card?

Once stored value is depleted, the customer can replenish the card at a special terminal / ATM. Example: Delhi Metro Smart Card, open-system PPI wallet.

26 Disposable Card?

Issued for a fixed value; once spent, the card is discarded. Example: single-trip metro tokens, one-time gift cards.

27 Contactless Smart Card?

Has an antenna embedded in the plastic body. When tapped near a reader, the chip is powered by the reader's electromagnetic field and exchanges data — no physical contact required. Example: RuPay / Visa / Mastercard contactless cards.

28 Founded?

2008 (incorporated December 2008; operations 2009).

29 Promoters?

Set up at the initiative of the Reserve Bank of India (RBI) and the Indian Banks' Association (IBA); promoter banks include SBI, PNB, Canara, BoB, BoI, HDFC, ICICI, Citi, HSBC and others.

30 Legal status?

Section 8 company under the Companies Act, 2013 (non-profit).

31 Enabling Act?

Payment and Settlement Systems Act, 2007 — RBI's statutory regulator-of-payments law under which NPCI was incorporated.

32 Flagship Products?

RuPay, UPI, IMPS, AePS, BBPS, NETC FASTag, Bharat QR, NACH, NCMC.

33 RuPay Classic — Headline Features / Insurance Cover?

Headline Features: Entry-level. Merchant offers on travel, pharmacy, lifestyle, shopping, jewellery. No airport lounge access.; Insurance Cover: Personal accident cover (limited).

34 RuPay Platinum — Headline Features / Insurance Cover?

Headline Features: All Classic features + domestic-airport-lounge access \( discontinued from 1 April 2026 per NPCI circular)\, comprehensive insurance, premium offers.; Insurance Cover: Accidental insurance up to ₹8 lakh (NPCI, current 2026); some banks bundle additional ₹2 lakh cover.

35 RuPay Select — Headline Features / Insurance Cover?

Headline Features: Most premium debit-card variant. 4 domestic + 2 international lounge visits per year (max 1 domestic per quarter), concierge, wellness, golf programme.; Insurance Cover: Personal accident cover up to ₹10 lakh (NPCI, current 2026).

36 RuPay PMJDY — Headline Features / Insurance Cover?

Headline Features: Issued under the Pradhan Mantri Jan-Dhan Yojana to financial-inclusion account holders. Accepted at all RuPay merchants.; Insurance Cover: Accident insurance ₹2 lakh (₹1 lakh for accounts opened before 28 Aug 2018; ₹2 lakh for those opened on or after).

37 What are RuPay-network credit cards?

are enabled on UPI.

38 What is QR (Quick Response) code?

is a 2-D barcode consisting of black squares on a white background, readable by any imaging device — typically a smartphone camera.

39 Plastic Money?

Use of debit / credit / prepaid / smart cards to execute electronic transactions in place of cash.

40 Credit Card?

Revolving credit facility within a pre-approved limit. "Buy Now, Pay Later." MAD floor 5%, APR disclosure mandatory, 30-day grievance window (RBI MD, amended March 2024).

41 Parties in CC Transaction?

Cardholder Merchant Acquiring Bank Clearing Network Issuing Bank.

42 Credit Card Types?

Proprietary (single issuer brand) vs Co-branded (issuer + partner). Co-brand partner cannot make the credit decision.

43 PPI?

Pre-loaded value instrument. Three types: Closed, Semi-Closed, Open. Only Open allows cash withdrawal. No interest on balance.

44 PPI Limits (in force 2026)?

Cash load ₹50,000 / month; cross-border ₹10,000 / txn, ₹50,000 / month. Draft 2026 MD proposes ₹10,000 / month cash and no cross-border.

45 Smart Cards?

Cards with embedded microprocessor chip. Types: Stored-value, Re-loadable, Disposable, Contactless. Tap-and-pay limit ₹5,000 without PIN.

46 Debit Card?

Direct access to customer's SB / Current account funds. Not permitted on CC / OD-loan / Loan accounts. Issuance now opt-in (2024).

47 NPCI?

Non-profit (Section 8) company set up by RBI + IBA under the Payment and Settlement Systems Act, 2007. Operates RuPay, UPI, IMPS, BBPS, AePS, NACH, Bharat QR.

48 Card Network?

Scheme that routes auth-clearing-settlement messages. Major: Visa, Mastercard, RuPay, AmEx, Diners. Choice-of-network mandatory from March 2024.

49 RuPay?

India's domestic card scheme. Launched 26 March 2012. Variants: Classic / Platinum / Select / PMJDY. Platinum lounge access discontinued 1 Apr 2026.

50 Bharat QR?

Interoperable QR-based P2M payment system by NPCI + Mastercard + Visa. Launched September 2016. Card-rails; distinct from UPI QR.

51 What is March 2024 amendment?

is 5% of outstanding, so the lowest sum on ₹40,000 is ₹2,000.

One-linersManagement Information Systems