JAIIB · RBWM

Credit & Debit Cards & Remittance Products

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

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One-liners from this chapter

Free sample — 8 of 66 rapid-fire Q&A cards.

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

A credit card allows the holder to borrow funds from the issuing bank up to a pre-approved limit, while a debit card draws directly from the cardholder's own bank account balance.

What is a 'balance transfer' facility offered by credit card issuers?

Moving outstanding balance from one card to another, often at lower interest.

Which RBI circular governs the issuance of credit cards by banks in India?

RBI's Master Directions on Credit Card and Debit Card – Issuance and Conduct Directions govern the issuance and conduct related to credit and debit cards in India.

What is the purpose of a 'credit limit' on a credit card?

Maximum amount a cardholder is authorized to borrow from the issuer.

What is the minimum billing cycle period mandated by RBI for credit cards?

RBI mandates that the billing cycle for credit cards must be at least 30 days, giving cardholders adequate time to review and pay their dues.

What is a 'cash advance' on a credit card and how is interest charged on it?

Withdrawing cash using credit card; interest accrues immediately without grace period.

What does the term 'revolving credit' mean in the context of credit cards?

Revolving credit means the cardholder can carry forward an unpaid balance from one billing cycle to the next, with interest charged on the outstanding amount.

What is CVV/CVC number on a credit or debit card?

Card Verification Value; three or four-digit security code printed on card.

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