JAIIB · RBWM

Credit Card And Debit Card

Chapter notes, video classes, MCQ practice tests and quick-revision one-liners for Retail Banking and Wealth Management — JAIIB.

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Q

What is a credit card in the context of retail banking?

A

A credit card is a payment instrument issued by a bank that allows the cardholder to borrow funds up to a pre-approved credit limit to make purchases, with repayment due at a later date.

Q

What is a PIN and why is it required for debit card transactions?

A

Personal Identification Number used to authenticate card holder identity.

Q

What is the key difference between a credit card and a debit card?

A

A credit card allows spending borrowed money up to a credit limit with repayment later, while a debit card directly deducts funds from the cardholder's linked bank account at the time of transaction.

Q

What is a virtual credit card?

A

A digital card number for online transactions without physical card issuance.

Q

Which RBI circular governs the issuance and operation of credit cards in India?

A

RBI's Master Direction on Credit Card and Debit Card – Issuance and Conduct Directions governs the issuance, billing, interest rates, and grievance redressal for credit and debit cards in India.

Q

What does EMV stand for in card technology?

A

Europay, Mastercard, and Visa — the chip card security standard.

Q

What is a credit limit on a credit card?

A

A credit limit is the maximum amount a cardholder is permitted to borrow or spend using the credit card, as sanctioned by the issuing bank based on the applicant's creditworthiness and income.

Q

What is a chip-and-PIN card?

A

A card with embedded microchip requiring PIN for secure authentication.

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