CAIIB · ITDB · Chapter 11

Plastic Money

Chapter notes, video classes, MCQ practice tests and quick-revision one-liners for Information Technology and Digital Banking (Elective) — CAIIB.

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One-liners from this chapter

Free sample — 8 of 38 rapid-fire Q&A cards.

Q

Funds source — Credit Card / Debit Card?

A

Credit Card: User accesses his line of credit (borrowed funds from the issuer); Debit Card: User accesses his own bank account balance

Q

Transaction limit — Credit Card / Debit Card?

A

Credit Card: Up to the sanctioned credit limit; Debit Card: Up to the available balance in account

Q

Payment timing — Credit Card / Debit Card?

A

Credit Card: Payment on receipt of monthly bill from the issuer; Debit Card: Immediate debit to the linked account

Q

Account requirement — Credit Card / Debit Card?

A

Credit Card: Customer may or may not have an account with the issuer; Debit Card: Customer must maintain an account and balance

Q

Source of funding repayment — Credit Card / Debit Card?

A

Credit Card: Repayment can be made from any bank account; Debit Card: Funded only from the linked account

Q

Interest charge — Credit Card / Debit Card?

A

Credit Card: Finance charges on unpaid balance (up to 42% p.a. typical); Debit Card: No interest — own funds are used

Q

Credit-score impact — Credit Card / Debit Card?

A

Credit Card: Card usage and repayment build CIBIL score; Debit Card: Typically no CIBIL impact (own money)

Q

RuPay Classic — Positioning / Key Benefits?

A

Positioning: Entry-level / mass-market debit card; Key Benefits: Standard NPCI merchant offers — travel, pharmacy, lifestyle, retail, jewellery. No airport lounge access.

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