Tuesday, March 29, 2022

ಇನ್‌ಸೈಟ್ ಐಎಎಸ್‌ ಇನ್‌ಸ್ಟಿಟ್ಯೂಟ್‌ನಿಂದ ಯುಪಿಎಸ್ಸಿ ತರಬೇತಿ

  KSPGK       Tuesday, March 29, 2022
Title : ಇನ್‌ಸೈಟ್ ಐಎಎಸ್‌ ಇನ್‌ಸ್ಟಿಟ್ಯೂಟ್‌ನಿಂದ ಯುಪಿಎಸ್ಸಿ ತರಬೇತಿ




53) Consider the following statements regarding debit or credit card tokenisation.

1. Tokenisation refers to storing of debit or credit card details by the merchants while making payments. 2. Recently RBI has banned the tokenisation system.

Which of the above statements is/ are correct?

a) I only

b) 2 only

c) Both 1 and 2 

d) Neither 1 nor

Solution: d)

Many merchants and e-commerce entities force customers to store debit or credit card details, which increases the risk of card data being stolen. This can be avoided now with the Reserve Bank of India allowing tokenisation of cards while making payments.

What is tokenisation?

It refers to replacement of card details with an alternative code called a 'token', which is unique for a combination of card, token requestor and the device, the RBI says. It reduces the chances of fraud arising from


sharing card details.

With effect from January 1, 2022, no entity in the card transaction or payment chain, other than the card issuers and card networks, should store the actual card data.


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54) Consider the following statements regarding Account Aggregator (AA) framework, recently seen in news.

1. Account Aggregator (AA) framework, was first announced by the Reserve Bank of India (RBI).

 2. It provides an institutional framework for seamless sharing of documents digitally between a borrower and a bank for credit access. 

3. Account Aggregators are classified as non-banking financial

companies (NBFCs).


Which of the above statements is/

are correct?

a) 1, 2 

b) 1, 3

c) 2, 3 

d) 1, 2, 3 

Solution: d)



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