JAIIB · PPB · Chapter 4

Data Communication Network and EFT Systems

Chapter notes, video classes, MCQ practice tests and quick-revision one-liners for Principles and Practices of Banking — JAIIB.

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Q

What does EFT stand for in banking technology?

A

EFT stands for Electronic Funds Transfer, which refers to the electronic movement of money from one bank account to another through computer-based systems.

Q

Which device converts digital signals to analogue and back for transmission over telephone lines, installed in pairs at each end?

A

Modem (Modulator-Demodulator)

Q

What is the primary purpose of a data communication network in banking?

A

A data communication network in banking enables the electronic exchange of financial data between branches, customers, and other institutions, supporting real-time transaction processing and information sharing.

Q

What data rate does optical fibre support according to the JAIIB chapter on data communication?

A

2 Gigabits per second (2 Gbps)

Q

Which RBI-operated system provides real-time gross settlement for high-value transactions in India?

A

RTGS (Real Time Gross Settlement) operated by RBI processes high-value interbank fund transfers individually and in real time, with a minimum transaction limit of Rs. 2 lakh.

Q

What data rate does coaxial cable support for digital signal transmission?

A

500 Mbps

Q

What is the minimum transaction amount for RTGS transfers as mandated by RBI?

A

The minimum transaction amount for RTGS is Rs. 2 lakh (Rs. 2,00,000), and there is no upper ceiling for individual transactions.

Q

Up to what distance can twisted pair cable reliably connect terminals in a bank branch?

A

Up to 150 metres

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