JAIIB Paper 2 Module C Quiz 3

Correct answer: Option 1. ATMs provide self-service functions such as cash withdrawal, balance enquiry and, depending on the machine and bank, deposits or other services. Topic area: Digital Banking Channels — ATM.

Correct answer: Option 2. Debit-card purchases usually debit the linked deposit account. Credit cards, by contrast, create a credit obligation under their terms. Topic area: Digital Banking Channels — Debit card.

Correct answer: Option 2. Credit cards allow the cardholder to use an approved credit line and repay according to the statement and card terms. Topic area: Digital Banking Channels — Credit card.

Correct answer: Option 1. EMV chip technology supports stronger card-present transaction security than relying only on static magnetic-stripe data, though it does not eliminate all fraud. Topic area: Digital Banking Channels — EMV chip card.

Correct answer: Option 3. Contactless payments use near-field communication or related contactless technology. Authentication requirements and limits depend on applicable rules and issuer settings. Topic area: Digital Banking Channels — Contactless card payment.

Correct answer: Option 4. Phishing commonly impersonates trusted organisations to steal credentials, OTPs or other information. Users should verify the source and avoid suspicious links. Topic area: Digital Banking Channels — Phishing.

Correct answer: Option 2. Skimming involves illicit capture of card data, often using tampered payment terminals or ATMs. Inspecting devices and monitoring transactions can help reduce risk. Topic area: Digital Banking Channels — Skimming.

Correct answer: Option 4. A fraudster may watch a customer enter a PIN or password. Shielding the keypad and maintaining awareness of surroundings reduce this risk. Topic area: Digital Banking Channels — Shoulder surfing.

Correct answer: Option 3. RBI‘s customer-protection framework differentiates liability based on bank/customer fault and timely reporting. Customers should report unauthorised transactions immediately; the applicable rules and facts determine liability. Topic area: Digital Banking Channels — Customer liability for unauthorised electronic transactions.

Correct answer: Option 3. RBI has harmonised turnaround-time and compensation rules for specified failed transactions in authorised payment systems. The applicable category and timeline should be checked rather than assuming one universal period. Topic area: Digital Banking Channels — Failed transaction compensation.

Correct answer: Option 1. A failed ATM cash withdrawal where the account is debited is a recognised failed-transaction category. The bank should investigate and reverse within the applicable prescribed timeline; compensation may apply for delay. Topic area: Digital Banking Channels — ATM cash not dispensed but account debited.

Correct answer: Option 1. Customers should use official app stores or bank links, keep devices updated, lock their devices and never disclose PINs or OTPs. Banks should provide secure app design and monitoring. Topic area: Digital Banking Channels — Mobile banking app security.

Correct answer: Option 3. HTTPS/TLS helps protect data in transit and authenticate the server certificate, but users must still verify the domain and remain alert to lookalike sites. Topic area: Digital Banking Channels — Internet banking HTTPS.

Correct answer: Option 2. Tokenisation reduces exposure of the actual card number in supported use cases. It does not remove the need for transaction authorisation, device security or fraud monitoring. Topic area: Digital Banking Channels — Tokenisation in card payments.

Correct answer: Option 4. CTS reduces physical cheque movement by transmitting cheque images and relevant data electronically, improving processing efficiency and reducing transit time. Topic area: Digital Banking Channels — Cheque Truncation System (CTS).

Correct answer: Option 1. BCP addresses continuity of critical operations during disruptions, including people, processes, premises, communications and technology dependencies. Topic area: Digital Banking Channels — Business Continuity Plan (BCP).

Correct answer: Option 4. Customers should never disclose an ATM PIN to anyone, including callers claiming to be bank staff. Banks do not need customers to reveal their PIN to resolve complaints. Topic area: Digital Banking Channels — ATM PIN.

Correct answer: Option 1. Online and telephone card payments are common card-not-present transactions. They require suitable authentication and fraud controls because the physical card is absent. Topic area: Digital Banking Channels — Card-not-present transaction.

Correct answer: Option 3. Fraudsters may misuse QR codes to induce payments or open malicious links. Customers should verify the payee and never enter a UPI PIN merely to receive money. Topic area: Digital Banking Channels — QR-code payment safety.

Correct answer: Option 4. Accessible design can include clear labels, screen-reader compatibility, adequate contrast and alternative authentication/support routes, improving inclusion and usability. Topic area: Digital Banking Channels — Accessibility in digital banking.