CAIIB · ITDB

ELECTRONIC COMMERCE AND BANKING

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

What is Electronic Commerce (e-commerce) in the context of banking?

A

E-commerce refers to the conduct of business transactions electronically over networks, including buying, selling, and transferring funds using digital platforms and internet-based systems.

Q

What is the primary difference between e-commerce and traditional commerce in banking?

A

E-commerce uses electronic networks instead of physical channels.

Q

What is the primary regulatory body overseeing digital banking and e-commerce transactions in India?

A

The Reserve Bank of India (RBI) is the primary regulatory body, issuing guidelines on internet banking, payment systems, and digital financial transactions under the Payment and Settlement Systems Act, 2007.

Q

What is the role of a digital certificate in authenticating e-commerce transactions?

A

It verifies the identity of parties involved in the transaction.

Q

What is a Payment Gateway in the context of electronic commerce?

A

A Payment Gateway is a technology service that authorises and processes online payment transactions between buyers and sellers, acting as an intermediary between the merchant's website and the acquiring bank.

Q

What is the meaning of asymmetric encryption used in e-banking security?

A

It uses two keys: a public key and a private key.

Q

What does the term 'non-repudiation' mean in electronic banking transactions?

A

Non-repudiation ensures that a party to a transaction cannot deny the authenticity of their digital signature or the sending of a message, providing legal proof of origin and integrity of electronic transactions.

Q

What is Transport Layer Security (TLS) and how does it protect online banking?

A

TLS encrypts data transmitted between browser and server.

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