PPB Module CChapter Notes5–7 Marks Expected

Alternate Delivery Channels & Digital Banking

Principles & Practices of Banking | Module C · Chapter 44

A high-yield chapter covering the entire digital banking ecosystem — ATMs (White Label, Brown Label, Cash Recyclers, Kiosks, CDMs, BNAs), all electromagnetic card types, Pre-paid Payment Instruments (PPIs) with their limits, digital wallets, internet banking, mobile banking, USSD *99#, e-commerce, neo-banking, and the RBI framework for customer protection and failed transaction compensation.

By Bankopedia.co.inUpdated 2026JAIIB PPB · Module C

📌 Why This Chapter Matters in JAIIB

Expect 5–7 questions from this chapter — one of the highest-yield chapters in Module C. Key numbers: WLA guidelines — June 2012; 4 WLA operators as of Jan 2022; SWADHAN live — 1 Feb 1997; NFS taken over by NPCI — 14 Dec 2009; Smart card ISO 7816 (physical/communication) and ISO 10202 (security); NFC range — ~10 cm; CDM limit without PAN — ₹49,950/day; BNA subsidy — 50% urban, 75% semi-urban; Small PPI max ₹10,000/month, ₹1,20,000/FY, outstanding ₹10,000; Full-KYC PPI outstanding max ₹2,00,000; cash withdrawal ₹2,000/transaction, ₹10,000/month; Convert Small PPI to Full-KYC within 24 months; 3 internet banking levels; Mobile cash out max ₹10,000/transaction, ₹25,000/month/beneficiary; USSD *99# by NPCI — 24×7; TAT circular dated 20 Sept 2019.

Key Facts & References — Chapter 44 at a Glance

Alternate delivery channels:ATMs, Tele-Banking, Mobile Banking, Online Banking, E-Wallets, Prepaid cards, BNAs, CDMs, PBK printers, E-Kiosks, Mobile Branches, PoS terminals

ATM models:Online (connected, daily limit via switch) · Offline (not connected, pre-fixed limit only) · Networked (NFS by NPCI)

Cash Dispenser (CD):Pruned version of ATM; cash withdrawal only — no depository

SWADHAN network launch:1 February 1997 — ATM network in Mumbai

NPCI took over NFS from IDRBT:December 14, 2009

WLA (White Label ATM):Set up/owned/operated by non-banks; first RBI guidelines June 2012; do NOT display any bank's branding

WLA operators (as of 1 Jan 2022):India1 Payments (formerly BTI), Tata Communications Payment Solutions, Hitachi Payment Services, Vakrangee

WLA key rule:WLA operator = 'acquirer'; earns interchange fee; 5-free transactions/month rule NOT applicable; cannot charge customers directly

Brown Label ATM:Hardware owned by service provider, leased to bank; cash management + connectivity = bank's responsibility

Cash Recycler cardless limit:₹20,000 per day (cardless transaction)

CDM without PAN:Up to ₹49,950 per account per day; PAN required for more

BNA (Bulk Note Acceptor) subsidy:RBI subsidized up to 50% (urban) and 75% (semi-urban); accepts up to 200 mixed notes; credited immediately

EMV = Europay, MasterCard, Visa:Global chip-card standard; replace magnetic stripe — RBI instruction Aug 2015, deadline Dec 2018; ATM/micro-ATM enabled May 2016

Smart card ISO standards:ISO 7816 — physical features + communication protocols; ISO 10202 — security features

NFC Contactless range:~10 cm (Near Field Communication); card tap/wave at POS; contactless symbol displayed

Small PPI limits:Max load ₹10,000/month; ₹1,20,000/FY; outstanding ₹10,000; only goods/services; no cash withdrawal; convert to full-KYC within 24 months

Full-KYC PPI:Max outstanding ₹2,00,000; pre-registered beneficiary transfer max ₹2,00,000/month; other transfers ₹10,000/month; cash withdrawal ₹2,000/transaction, ₹10,000/month

Gift PPI:Max ₹10,000; non-reloadable; no cash-out; no funds transfer

PPI-MTS (Mass Transit System):Max outstanding ₹3,000; non-refundable/non-transferable

PPI validity:Min 1 year from date of loading/last reloading; 45-day advance SMS alert before expiry; inactive after 1 year → inform RBI

3 internet banking levels:(a) Basic informational; (b) Simple transactional — no fund-based; (c) Fully transactional — fund transfer, bill payment, securities

Mobile cash out:Max ₹10,000/transaction; velocity cap max ₹25,000/month/beneficiary; identification of recipient required

USSD *99#:By NPCI; 24×7 including holidays; fund transfer, balance enquiry, UPI PIN; uses mobile number/UPI ID/Aadhaar/A/c No. & IFSC

Mobile banking fee:Offered free of charge; only CBS-enabled banks can offer mobile banking

TAT for failed transactions:RBI notification RBI/2019-20/67/DPSS.CO.PD No.629/02.01.014/2019-20 dated 20 Sept 2019

ATMs — Models, Types, Services & Security

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44.3 Automated Teller Machines (ATMs) — Three Models

Online ATM

Connected to bank's database; provides online account access; daily withdrawal limit monitored by ATM switch.

Offline ATM

NOT connected to bank's database; withdrawals permitted up to a pre-fixed limit irrespective of actual balance.

Networked ATM

Connected to an ATM network; cardholders can use their card at ANY networked ATM — 'anywhere, anytime' banking. Majority in India networked via NFS by NPCI.

Cash Dispenser (CD)

A pruned-down version of the ATM — cash withdrawal only, no depository facility. Also called CD (as opposed to ATM which includes deposit functions).

NFS / NPCI History

▸SWADHAN network: Mumbai ATM network; went live on 1 February 1997.
▸IDRBT set up National Financial Switch (NFS) for apex-level connectivity.
▸NPCI took over NFS operations from IDRBT on December 14, 2009.

ATM Customer Interface Components

▸Video Display Monitor
▸Keyboard/Keypad
▸Touch Screen
▸Card Reader slot
▸Cash Dispenser slot

Services Provided by ATMs

✓Cash Withdrawal

✓Cash Deposit

✓Cheque Deposit

✓Balance Enquiry

✓Statement Enquiry

✓PIN Change

✓Funds Transfer

✓Credit Card Payment

✓Utility Bill Payment

✓Cheque Book Request

✓Insurance Premium Payment

✓Mobile/DTH Recharge

✓Term Deposit Opening

✓User Details Updation

✓Aadhaar Updation

ATM Security Controls (RBI Mandates)

▸EMV Chip and PIN-based cards: RBI instructed replacement of all magnetic stripe cards in August 2015; deadline — end of December 2018. ATMs/micro-ATMs enabled for EMV Chip processing by May 2016.
▸Baseline cyber security controls for ATM Switch application service providers: RBI guidelines issued December 31, 2019.
▸Control measures: BIOS password; disable USB ports; disable auto-run; latest OS/software patches; terminal security solution; time-based admin access; anti-skimming and whitelisting solution; upgrade ATMs to supported OS versions.

WLA · Brown Label · Cash Recyclers · Kiosk · CDM · BNAs

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44.3.1 White Label ATMs (WLAs)

WLAs are set up, owned, and operated by non-banks. First RBI guidelines issued in June 2012 under the Payment & Settlement Systems Act, 2007. WLAs do not display any bank's branding/signage— hence "White Label". Serve all banks' customers; interconnected with entire ATM network.

4 Authorised WLA Operators (as of 1 January 2022):

India1 Payments (formerly BTI Payments)

Tata Communications Payment Solutions

Hitachi Payment Services

Vakrangee

Key WLA Rules:

▸WLA operator = 'acquirer' for all transactions; earns interchange fee from issuer bank.
▸Freedom to choose location; must adhere to RBI-stipulated annual targets and Tier I–II vs Tier II–VI ratio.
▸Only bank-issued cards and RBI-approved institution cards permitted; no deposits to WLA operator account.
▸WLA operator can earn from advertisements (subject to ASCI codes) and value-added services.
▸The 5 free transactions/month rule for other-bank ATMs does NOT apply to WLAs; charges must be displayed before transaction.
▸WLA operator cannot charge customers directly; earns only the 'Interchange' fee.
▸Regulatory guidelines for compensation for failed ATM transactions apply to WLAs.

44.3.2 Brown Label ATMs

Service provider owns the hardware and leases the ATM to banks. Cash management + connectivity to banking networks is the bank's responsibility. Contrast with WLA: in Brown Label, bank manages cash; in WLA, operator manages all.

44.3.3 Cash Recyclers

Self-service terminal that accepts and dispenses cash; account credited/debited in real-time. Transaction receipt issued.

✓Accept + dispense cash
✓Ensures genuineness of currency
✓Recognises counterfeit notes
✓Cash deposit with debit card
✓Cardless transaction up to ₹20,000/day

44.3.4 Kiosk Banking

Unmanned electronic box/structure; AI-enabled; high foot-traffic locations (airports, malls). Services:

▸Balance enquiry
▸Cheque deposit (CTS interface)
▸No-frill account opening
▸Cash deposit/withdrawal
▸Bill payment (debit card/net banking)
▸Browser-based internet banking

44.3.5 Passbook Printing Kiosk (PBK)

Automated 24×7 passbook printer. Reads magnetic strip on passbook. Auto-flip + auto-align pages. Features:

▸Fully automated — no staff intervention
▸Customer inserts passbook with cover page open
▸Passbook has unique pre-printed number mapped to account
▸Magnetic stripe based passbook
▸Installed in E-lobbies alongside ATM, BNA, internet kiosk

44.3.6 & 44.3.7 CDM & BNA

Cash Deposit Machine (CDM)

▸Deposit via debit card or account number
▸Instant credit — 24×7, all days
▸Self-service; no bank official needed
▸No denomination segregation needed
▸Without PAN: max ₹49,950/account/day
▸With PAN: no such restriction

Bulk Note Acceptors (BNAs)

▸Up to 200 mixed notes per deposit
▸Credited immediately to account
▸RBI subsidized: 50% (urban), 75% (semi-urban)

Electromagnetic Cards — Credit, Debit, Smart, NFC & More

Members Only

Credit Card

▸Size: ~8.5 cm × 5.5 cm; name and account number embossed.
▸Cardholder can pay full amount or pay in monthly instalments (revolving credit).
▸Service fee charged on deferred/instalment amounts.
▸Many banks allow cash withdrawal from credit card (emergency); levy service fee.
▸Many credit cards also function as ATM cards.

Charge Card

▸No interest charged — BUT full payment due every month on receipt of statement.
▸Holders may pay a high annual fee.
▸Very few issuers of charge cards.
▸Unlike credit card (revolving credit), a charge card must be fully paid monthly — no instalment option.

Debit Card

▸Bank-issued; user accesses their own funds.
▸Acts like a credit card in usage — but funds are IMMEDIATELY debited to the cardholder's account.
▸No credit or deferred payment facility.

Member Card

▸Used exclusively by members of a club or chain of hotels.
▸Example: Taj Card — issued by Taj Group of Hotels; used only at their hotels.
▸Usage is exclusive to members of a specific group or establishment.

44.4.4 Smart Cards (Chip Cards)

Types of Smart Cards

▸Intelligent memory chips — used in payphones, ID, access control, voting.
▸Microprocessor smart cards — advanced; built-in memory + processor + OS; ideal for banking (reusable); can protect against fraudulent operations using DES (Data Encryption Standard).

ISO Standards for Smart Cards

ISO 7816

Physical features + communication protocols (size, position, contacts)

ISO 10202

Security architecture features for smart cards

EMV — Europay, MasterCard, Visa

Global standard for IC (chip) card interoperability. Chip prevents counterfeiting; PIN identifies owner. Chip cards used with PIN address counterfeit, lost, and stolen card fraud. RBI mandated replacement of magnetic stripe cards with EMV by December 2018.

44.4.5 NFC Contactless / Tap & Go Cards

Cards can be swiped (Magnetic-Stripe), dipped (Chip-based), or tapped (NFC Contactless) at POS/ATM.

▸NFC = Near Field Communication; ~10 cm range for data exchange.
▸NFC-enabled card transacts wirelessly with NFC-enabled POS terminal.
▸Contactless symbol displayed on cards and terminals.
▸Faster and more secure — cardholder need not part with the card.

44.4.7 Biometric Security Features for Cards

▸Dynamic Signature Verification — verifies signature dynamics (how it is written).
▸Fingerprint Verification — scans fingerprint ridges electronically.
▸Voice Recognition — compares voice with recorded original.
▸Retinal Pattern Verification — low-intensity infrared beam scans the retina.
▸Vein Recognition — infrared scanning of subcutaneous vein structure.
▸Visual Recognition — digitised photo stored in smart card; verified by scanning video camera.

Modes of Card Acceptance

Manual Mode

▸Verify genuineness from warning bulletin
▸Take imprint of card on charge slips
▸Interchange fee: decided by bank
▸Recommended for low-ticket merchants (not jewellery, electronics, hotels, air tickets)

Electronic Mode (EDC)

▸EDC = Electronic Data Capture machine
▸Validity + credit limit verified online; merchant approves online
▸Interchange fee decided by bank
▸Merchant needs telephone facility

Digital Wallets & Pre-paid Payment Instruments (PPIs)

Members Only

44.4.8 Digital Wallet / e-Wallet

A digital version of a physical wallet — uses bank account, debit or credit card information to process payments stored in secure/encoded format. Major players: PayTM, MobiKwik, PhonePe. Can be bank-owned or non-bank owned (non-bank providers need a PPI licence from RBI).

Merits

✓Cannot be physically snatched/pickpocketed
✓Lower payment processing time
✓Reduces fraud
✓Economical to use
✓Works offline + online merchants

Demerits

✗Needs smart phone + fast internet
✗Daily/monthly limits restrict high-value payments
✗Different e-wallets for different services — complex to manage

44.4.10 Pre-paid Payment Instruments (PPIs) — Three Categories

1. Closed System PPIs

For purchase of goods/services from that entity only. No cash withdrawal. No third-party payment. No RBI approval required. Example: Prepaid card for a specific bookstore or restaurant.

2. Small PPIs (Minimum-detail PPIs)

Require RBI approval. Issued by banks and non-banks after obtaining minimum details (mobile number verified with OTP + self-declaration of name + identity document number).

With Cash Loading Facility

▸Max load: ₹10,000/month
▸Max load in FY: ₹1,20,000
▸Max outstanding: ₹10,000
▸Max debits: ₹10,000/month
▸Only goods/services — no cash withdrawal, no funds transfer
▸Convert to full-KYC within 24 months (no further credit if not done)
▸Cannot issue same user again with same mobile + details

Without Cash Loading Facility

▸Similar limits: ₹10,000/month, ₹1,20,000/FY, outstanding ₹10,000
▸No cash loading (no physical cash; only electronic sources)
▸Only goods/services — no cash withdrawal, no funds transfer
▸Closure: balance transferred back to source or to bank account after KYC

3. Full-KYC PPIs

Issued after completing KYC of holder (V-CIP allowed). Reloadable. Can convert Small PPIs to Full-KYC.

Max outstanding:₹2,00,000

Pre-registered beneficiary transfer:Max ₹2,00,000/month/beneficiary

Other funds transfer:Max ₹10,000/month

Cash withdrawal (bank-issued PPIs):₹2,000/transaction; ₹10,000/month

Cash withdrawal (non-bank PPIs):₹2,000/transaction; ₹10,000/month across all channels

Fund transfer to other PPIs/debit/credit cards:Permitted subject to limits above

Gift PPIs

▸Max ₹10,000 per Gift PPI
▸Non-reloadable
▸No cash-out; no funds transfer
▸Balance can be returned to source with holder consent
▸KYC of purchaser maintained; separate KYC not required if issued against bank account/credit card debit

PPI-MTS (Mass Transit Systems)

▸Issued by MTS operators after RBI authorization
▸Reloadable
▸No cash-out / refund / funds transfer
▸Max outstanding: ₹3,000
▸Escrow arrangement required

Key PPI Operational Rules

▸Issued in INR only; no interest paid on balances
▸Paper vouchers NOT permitted
▸Validity: min 1 year from loading/last reloading
▸45-day advance SMS/e-mail alert before expiry
▸Inactive for 1 year → inactivated + RBI informed; reactivated on request after due diligence
▸Cash loading: max ₹50,000/month (overall)

Electronic & Digital Banking — Internet, Mobile, USSD, Neo-Banking

Members Only

44.5.2 Internet Banking — Three Levels

Level 1: Basic Informational

Bank's website disseminates information on products and services. May receive and reply to customer queries by e-mail. No transactions possible.

Level 2: Simple Transactional

Customers can submit instructions, applications for services, and balance queries — but NO fund-based transactions on accounts.

Level 3: Fully Transactional

Full account operation: fund transfers, utility bill payments, subscription to bank products, purchase/sale of securities. Includes 'virtual banks' or 'internet-only banks' with no physical presence.

5 Distinctive Features of Internet Banking

▸(i) Removes traditional geographical barriers — reaches customers across countries/jurisdictions; raises questions of jurisdiction of law.
▸(ii) Security of transactions, validity of electronic contracts, and customer privacy are major concerns as internet is a public domain.
▸(iii) Adds new dimensions to banking risks — heightens some and introduces new risk control challenges.
▸(iv) Strategic risk to banks who do not adopt internet banking — loss of business to competitors.
▸(v) Internet is backbone for social networking (Facebook, WhatsApp, YouTube, Instagram, etc.) — used by banks for customer engagement.

44.5.3 & 44.5.4 Mobile Banking in India

Key Requirements for Mobile Banking

▸Only banks with CBS (Core Banking Solutions) can offer mobile banking.
▸Banks licensed and supervised and with physical presence in India can offer mobile banking.
▸Service must be available to customers irrespective of mobile network.
▸Mobile banking must be offered FREE OF CHARGE.
▸KYC, AML, and CFT guidelines apply to mobile banking services.
▸Banks must register customers for mobile banking — minimize branch visits for registration.

MPIN Generation Channels

▸Own ATMs
▸USSD menu
▸Internet banking
▸MPIN mailers
▸Industry level common website

Mobile Banking Cash-Out

▸Max ₹10,000 per transaction
▸Velocity cap: max ₹25,000/month/beneficiary
▸Disbursal only after identification of recipient
▸Can be facilitated at ATMs or through bank agents (BCs)

USSD *99# — Mobile Banking for All

▸Introduced by NPCI for banking services to every segment — works on basic phones.
▸Available 24×7, round the clock, including holidays.
▸Key services: Funds transfer (account to account across any bank), balance enquiry, setting/changing UPI PIN.
▸Transfer using: Mobile number / UPI ID / Aadhaar Number / Account No. + IFSC / UPI ID + Mobile No.
▸Non-financial services: Balance enquiry, last 5 transactions, Aadhaar linking status, PMJDY account OD status.

Tele Banking

Customer dials the bank's designated number; identifies via identification number; uses secure PIN for services. Interactive system (now evolving to AI/Voice Assistants/Bots). Services:

▸Balance enquiry
▸Last few transactions
▸Cheque book request
▸Stop payment
▸Fund transfers to self-account
▸Generate ATM PIN
▸Interest certificate
▸Update mobile/e-mail

44.5.6 Neo-Banking

A Neo-Bank is a digital bank with no physical branches — entirely online. Targets tech-savvy customers. A Fintech firm offering digital and mobile-first services: payments, debit cards, money transfers, lending, and more.

▸No physical presence at any set location
▸Bridges gap between traditional banks and new-age customer expectations
▸Leverages modern digital platforms for data-driven decisions
▸In India, Neo-Banks partner with banks to provide banking services
▸Account opening from mobile — in minutes from home

Customer Protection, TAT Framework, Summary & Flashcards

Members Only

44.6 Customer Protection — Unauthorised Transactions

RBI has issued guidelines limiting the liability of customers in unauthorised electronic banking transactions due to increased financial inclusion, customer protection emphasis, and surge in customer grievances relating to unauthorised debits to accounts/cards.

44.7 TAT Framework for Failed Transactions

Failure can be due to communication link disruptions, no cash in ATMs, time-out sessions, non-credit to beneficiary account, etc. RBI has laid down a framework for Turnaround Time (TAT) and customer compensation for failed transactions.

RBI Circular:

RBI/2019-20/67/DPSS.CO.PD No.629/02.01.014/2019-20
dated 20 September 2019

Chapter 44 in 6 Lines

Alternate delivery channels include ATMs (Online/Offline/Networked), Cash Dispensers, Tele-Banking, Mobile Banking, Internet Banking, E-Wallets, BNAs, CDMs, Kiosks, PoS terminals. SWADHAN network: 1 Feb 1997. NPCI took over NFS from IDRBT: 14 Dec 2009. ATM services: 15+ including cash, balance, PIN change, bill payment, cheque deposit.
WLA (White Label ATM): non-bank owned; RBI guidelines June 2012; 4 operators as of Jan 2022. WLA operator = acquirer; earns interchange fee; 5-free-transaction rule NOT applicable; cannot charge customers. Brown Label ATM: hardware by service provider, cash management/connectivity by bank. Cash Recycler: deposit + dispense; cardless ₹20,000/day. CDM: without PAN max ₹49,950/day. BNA: up to 200 mixed notes; RBI subsidy 50% urban, 75% semi-urban.
Electromagnetic cards: Credit (revolving credit, instalment option) · Charge (full payment monthly, no interest, high annual fee) · Debit (immediately debited) · Smart Card (IC chip, ISO 7816 physical/communication, ISO 10202 security, EMV = Europay-MasterCard-Visa, DES encryption) · NFC Contactless (tap, ~10 cm range) · Member Card (club-exclusive). EMV mandate: Aug 2015, deadline Dec 2018. Biometrics: signature, fingerprint, voice, retinal, vein, visual.
PPIs: (1) Closed System — entity only, no RBI approval. (2) Small PPI — mobile OTP + self-declaration; max ₹10,000/month, ₹1,20,000/FY, outstanding ₹10,000; only goods/services; no cash/funds transfer; convert to Full-KYC within 24 months. (3) Full-KYC — after KYC; outstanding max ₹2,00,000; pre-reg beneficiary ₹2,00,000/month; other transfer ₹10,000/month; cash withdrawal ₹2,000/transaction, ₹10,000/month. Gift PPI: ₹10,000 max, non-reloadable. PPI-MTS: ₹3,000 max. PPI validity: min 1 year; 45-day expiry alert; no interest on PPI balances; no paper vouchers.
Internet banking: Level 1 (informational) → Level 2 (simple transactional, no funds) → Level 3 (fully transactional). Mobile banking: CBS-required; free of charge; MPIN via ATM/USSD/net banking/mailer; cash out max ₹10,000/transaction, ₹25,000/month/beneficiary. USSD *99# by NPCI: 24×7 including holidays; fund transfer (mobile/UPI ID/Aadhaar/A/c+IFSC), balance, UPI PIN. Telebanking: PIN-based dial-up; now AI/voice bots. Neo-Banking: no branches; partners with banks in India.
Customer protection: RBI guidelines limit liability in unauthorised transactions. TAT framework: RBI circular dated 20 Sept 2019 — standardises compensation for failed transactions (ATM no cash, session time-out, communication failure, non-credit to beneficiary). E-Commerce: B2B + B2C; round-the-clock, low operating cost. Information security for mobile banking: confidentiality, integrity, authenticity, non-repudiation.

Flashcards — Chapter 44

1. What are alternate delivery channels in banking?▼

ATMs, Tele-Banking, Mobile Banking, Online Banking, E-Wallets (including m-wallets), prepaid cards, Bulk Note Acceptors (BNAs), Cash Deposit Machines (CDMs), Passbook Printing Kiosks (PBKs), E-Kiosks, Mobile Branches, and Point of Sale (PoS) terminals.

2. What are the three ATM models in India?▼

(1) Online ATM: connected to bank's database; online account access; daily limit via ATM switch. (2) Offline ATM: not connected to database; withdrawals up to pre-fixed limit only, irrespective of actual balance. (3) Networked ATM: connected to ATM network (NFS by NPCI); cardholders use card at any networked ATM.

3. What is a Cash Dispenser (CD) and how does it differ from an ATM?▼

A Cash Dispenser is a pruned-down version of the ATM — intended for cash withdrawals only. It has no depository (deposit facility). An ATM has both dispensing and deposit capabilities.

4. When did NPCI take over the NFS from IDRBT?▼

NPCI (National Payment Corporation of India) took over NFS (National Financial Switch) operations from IDRBT on December 14, 2009. The SWADHAN network in Mumbai went live on 1 February 1997.

5. What are White Label ATMs (WLAs) and when were the first guidelines issued?▼

WLAs are ATMs set up, owned, and operated by NON-BANKS. First RBI guidelines were issued in June 2012 under the Payment & Settlement Systems Act, 2007. They do not display any bank's branding ('white label').

6. Name the 4 authorised WLA operators as of 1 January 2022.▼

(1) India1 Payments (formerly BTI Payments); (2) Tata Communications Payment Solutions; (3) Hitachi Payment Services; (4) Vakrangee.

7. What are the key rules for WLA operators regarding fees and charges?▼

WLA operator is the 'acquirer' and earns the Interchange fee from issuer banks. Cannot charge customers directly. Cannot receive any other fee from the issuer bank beyond the interchange. The 5-free-transactions-per-month rule for other-bank ATMs does NOT apply to WLAs; charges must be displayed before the transaction.

8. What is a Brown Label ATM?▼

An ATM where the hardware is owned by a service provider and leased to the bank. Cash management and connectivity to the banking network is the BANK's responsibility (unlike WLA where the operator manages all).

9. What is the cardless transaction limit for Cash Recyclers?▼

₹20,000 per day for cardless transactions on Cash Recyclers.

10. What is the CDM limit without a PAN number?▼

Customers can deposit only up to ₹49,950 per account per day at a CDM without a PAN number. For deposits above ₹49,950/day, the PAN must be registered with the bank.

11. What are the BNA subsidy rates provided by RBI?▼

RBI subsidized the cost of BNAs (Bulk Note Acceptors) up to 50% in urban areas and 75% in semi-urban areas. BNAs can accept up to 200 mixed notes per deposit; amount credited immediately.

12. What are the EMV standards and when did RBI mandate their implementation?▼

EMV = Europay, MasterCard, Visa — global standard for IC/chip card transactions. RBI instructed banks to replace all magnetic stripe cards with EMV Chip and PIN cards in August 2015 with a deadline of December 2018. ATMs/micro-ATMs were instructed to enable EMV Chip processing by May 2016.

13. What are the ISO standards for smart cards?▼

ISO 7816: defines physical features and communication protocols (size, contact position, utility). ISO 10202: defines security architecture features for smart cards.

14. How does an NFC Contactless card work and what is its range?▼

NFC (Near Field Communication) supports data exchange at approximately 10 cm. An NFC-enabled smart card transacts wirelessly with an NFC-enabled POS terminal by simply tapping ('Tap & Go'). Transactions are faster and more secure as the cardholder need not part with the card.

15. What are the limits for Small PPIs (with cash loading)?▼

Max load ₹10,000/month; max load in FY ₹1,20,000; max outstanding ₹10,000; max debits ₹10,000/month. Only for purchase of goods/services. No cash withdrawal; no funds transfer. Must be converted to Full-KYC PPI within 24 months (no further credit if not done).

16. What are the key limits for Full-KYC PPIs?▼

Max outstanding: ₹2,00,000. Pre-registered beneficiary transfer: max ₹2,00,000/month per beneficiary. All other funds transfer: max ₹10,000/month. Cash withdrawal (both bank and non-bank issued PPIs): ₹2,000 per transaction; ₹10,000 per month.

17. What are the limits for Gift PPIs and PPI-MTS?▼

Gift PPI: max ₹10,000 per instrument; non-reloadable; no cash-out; no funds transfer. PPI-MTS (Mass Transit System): max outstanding ₹3,000; non-refundable/non-transferable; reloadable.

18. What are the three levels of internet banking?▼

(1) Basic Level: informational website only; e-mail query replies — no transactions. (2) Simple Transactional: submit instructions/queries/applications; NO fund-based transactions. (3) Fully Transactional: complete account operations — fund transfers, bill payments, securities trading, subscription to bank products.

19. What are the rules for mobile banking eligibility and charges?▼

Only banks with CBS (Core Banking Solutions) that are licensed and have physical presence in India can offer mobile banking. Mobile banking must be available to customers irrespective of mobile network. Mobile banking is offered FREE OF CHARGE.

20. What is USSD *99# and who operates it?▼

USSD *99# is a mobile banking service introduced by NPCI. Available 24×7 including holidays on basic phones. Services: fund transfer (using mobile number/UPI ID/Aadhaar/Account No.+IFSC), balance enquiry, setting/changing UPI PIN, last 5 transactions, Aadhaar linking status.

21. What is the RBI circular for TAT framework for failed payment transactions?▼

RBI/2019-20/67/DPSS.CO.PD No.629/02.01.014/2019-20 dated 20 September 2019. It lays down Turnaround Time (TAT) and customer compensation for failed transactions — failed ATM transactions (no cash, session time-out, communication link disruptions, non-credit to beneficiary account, etc.).

22. What is Neo-Banking?▼

A Neo-Bank is a digital bank with NO physical branches — entirely online. It is a Fintech firm offering digital and mobile-first services (payments, debit cards, money transfers, lending). In India, Neo-Banks partner with banks to provide a range of banking services. Account opening can be done from a mobile device in minutes.

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