UPSC Prelims 2018 GS Paper I · Q15 of 100 Economy easy

Which one of the following links all the ATMs in India ?

  1. (a) Indian Banks’ Association
  2. (b) National Securities Depository Limited
  3. (c) National Payments Corporation of India ✓ UPSC's answer
  4. (d) Reserve Bank of India

Why the answer is (c)

• The National Payments Corporation of India (NPCI), set up in 2008 under RBI and IBA guidance, operates the National Financial Switch, which interconnects all ATMs in India so that a card from one bank works at another bank's ATM — option (c).

• NPCI also runs UPI, RuPay, IMPS and Aadhaar-enabled payments.

• The IBA (a) is an industry association; NSDL (b) is a securities depository; the RBI (d) regulates payments but does not operate the ATM switch.

• Hence option (c).

Why the other options are wrong

(a) Indian Banks’ Association
IBA is a bankers' association, not a payments operator.
(b) National Securities Depository Limited
NSDL handles securities, not ATMs.
(d) Reserve Bank of India
RBI regulates but does not operate the ATM network.

Asked in the GS Paper I of the UPSC Civil Services Preliminary Examination 2018, held on 3 June 2018. Question and answer key: Union Public Service Commission. Explanation: UPSC Answer Check.

Reading the answer is not the same as getting it right under a clock. Practise this question with UPSC's negative marking, and anything you miss goes into an error notebook until you get it right twice.

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