MCQs with Answers on “India’s Journey Towards Becoming a Cashless Economy”
1. What was the primary objective of demonetization in 2016 in India?
a) Reduce inflation
b) Curb black money and promote digital transactions
c) Increase employment opportunities
d) Stabilize the stock market
Answer: b) Curb black money and promote digital transactions
2. Which mobile payment platform was launched by the National Payments Corporation of India (NPCI)?
a) Paytm
b) Google Pay
c) BHIM
d) PhonePe
Answer: c) BHIM
3. The term “Digital India” was launched in which year?
a) 2014
b) 2015
c) 2016
d) 2017
Answer: b) 2015
4. What does UPI stand for in the context of digital payments in India?
a) Unified Payment Integration
b) Unified Payments Interface
c) Universal Payment Index
d) Unified Platform Interface
Answer: b) Unified Payments Interface
5. Which Indian agency is responsible for managing and promoting digital payment solutions?
a) Reserve Bank of India (RBI)
b) National Payments Corporation of India (NPCI)
c) Ministry of Finance
d) NITI Aayog
Answer: b) National Payments Corporation of India (NPCI)
6. What is the main benefit of a cashless economy?
a) Encourages black money
b) Reduces corruption and improves transparency
c) Decreases economic growth
d) Promotes cash hoarding
Answer: b) Reduces corruption and improves transparency
7. The Payment and Settlement Systems Act, which governs digital payments, was enacted in which year?
a) 2005
b) 2007
c) 2009
d) 2011
Answer: b) 2007
8. What is the name of the government initiative aimed at promoting digital transactions post-demonetization?
a) Digital Bharat Abhiyan
b) Digital India Campaign
c) DigiDhan Mission
d) BharatNet
Answer: c) DigiDhan Mission
9. Which technology is most commonly used in contactless card payments?
a) QR Code
b) RFID
c) Blockchain
d) NFC
Answer: d) NFC
10. What is the maximum limit for UPI transactions set by NPCI as of 2024?
a) ₹1 lakh
b) ₹2 lakhs
c) ₹3 lakhs
d) ₹5 lakhs
Answer: a) ₹1 lakh
11. Which of the following is a disadvantage of a cashless economy?
a) Increased transparency
b) Cybersecurity risks
c) Reduced corruption
d) Easier tax collection
Answer: b) Cybersecurity risks
12. What does the term “e-wallet” refer to?
a) Physical wallet for coins
b) Online wallet for digital transactions
c) Bank savings account
d) Fixed deposit account
Answer: b) Online wallet for digital transactions
13. Which regulatory body oversees payment systems in India?
a) Ministry of Finance
b) Reserve Bank of India (RBI)
c) Securities and Exchange Board of India (SEBI)
d) NITI Aayog
Answer: b) Reserve Bank of India (RBI)
14. What is the goal year for the Indian government to achieve a $1 trillion digital economy?
a) 2025
b) 2027
c) 2030
d) 2035
Answer: c) 2030
15. Which Indian state became the first cashless state in India?
a) Gujarat
b) Kerala
c) Goa
d) Maharashtra
Answer: c) Goa
16. What is the main purpose of the “Digital Payment Index” launched by the RBI?
a) Monitor GDP growth
b) Measure the extent of digital payments
c) Track black money
d) Regulate cryptocurrencies
Answer: b) Measure the extent of digital payments
17. Which platform integrates Aadhaar with payment systems for seamless transactions?
a) UPI
b) AEPS
c) RTGS
d) NEFT
Answer: b) AEPS
18. What is the significance of the “Rupay” card in India’s digital economy?
a) Promotes imported banking products
b) Encourages domestic card usage and reduces dependency on foreign networks
c) Offers only credit card services
d) Replaces physical cash
Answer: b) Encourages domestic card usage and reduces dependency on foreign networks
19. Which financial instrument facilitates instant peer-to-peer transactions in India?
a) RTGS
b) NEFT
c) UPI
d) ECS
Answer: c) UPI
20. What does the “QR Code” stand for?
a) Quick Record
b) Quick Response
c) Quality Regulation
d) Quantum Register
Answer: b) Quick Response
21. How does GST indirectly support a cashless economy?
a) Discourages e-commerce transactions
b) Simplifies taxation and promotes digital records
c) Increases the use of cash transactions
d) Reduces the use of digital platforms
Answer: b) Simplifies taxation and promotes digital records
22. Which ministry leads the Digital India initiative?
a) Ministry of Finance
b) Ministry of Electronics and Information Technology
c) Ministry of Commerce
d) Ministry of Home Affairs
Answer: b) Ministry of Electronics and Information Technology
23. Which payment method is referred to as “scan and pay”?
a) Credit card
b) NFC payment
c) QR code payment
d) Net banking
Answer: c) QR code payment
24. Which country has inspired India’s UPI model?
a) United States
b) China
c) Sweden
d) Japan
Answer: b) China
25. What role does Aadhaar play in India’s cashless economy?
a) Enables biometric authentication for secure payments
b) Acts as a credit card
c) Provides loan facilities
d) Issues cheques
Answer: a) Enables biometric authentication for secure payments
26. The slogan “Less cash, more digital” is associated with which initiative?
a) Pradhan Mantri Jan Dhan Yojana
b) Digital India Campaign
c) Make in India
d) Start-up India
Answer: b) Digital India Campaign
27. What is the major impact of a cashless economy on taxation?
a) Reduces tax collection
b) Increases tax evasion
c) Enhances transparency and tax compliance
d) Discourages indirect taxes
Answer: c) Enhances transparency and tax compliance
28. Which Indian bank was the first to launch a mobile banking app?
a) HDFC Bank
b) ICICI Bank
c) SBI
d) Axis Bank
Answer: b) ICICI Bank
29. What is Bharat QR?
a) A government app for e-commerce
b) An interoperable QR code for digital payments
c) A blockchain technology platform
d) A microcredit scheme
Answer: b) An interoperable QR code for digital payments
30. What is the primary focus of the Pradhan Mantri Jan Dhan Yojana (PMJDY)?
a) Wealth creation
b) Financial inclusion and promoting cashless transactions
c) Skill development
d) Rural employment
Answer: b) Financial inclusion and promoting cashless transactions
This set of questions provides comprehensive coverage of India’s journey towards becoming a cashless economy and helps aspirants understand the nuances of this important topic.
