CAIIB · ITDB · Chapter 5

Cards - Debit, Credit, Prepaid, Smart, Co - branded

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

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Q

Define plastic money.

A

Card-based payment instruments (credit, debit, smart, prepaid) enabling cashless transactions without physical currency.

Q

What determines a credit card's limit?

A

Monthly income, CIBIL/credit score, repayment history, and occupation profile assessed by issuer.

Q

What is the interest-free credit period on credit cards?

A

Typically 20 to 50 days between purchase date and bill due date; full repayment avoids finance charges.

Q

How does debit card transaction limit differ from credit card?

A

Debit limit equals available account balance plus OD; credit limit is a separate sanctioned revolving line.

Q

What is a smart card?

A

Card with embedded microprocessor chip enabling data storage, cryptographic operations, and on-card authentication.

Q

Define stored value cards.

A

Prepaid cards with pre-loaded value decremented per transaction; non-reloadable once exhausted.

Q

What is RuPay?

A

India's domestic card payment scheme operated by NPCI since March 26, 2012; over 50% debit-card share.

Q

What is CVV and where is it located?

A

Three-digit Card Security Code on back of card; four digits on American Express front.

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