RBI Assistant Prelims Mock Test 01

1. In August 2016, the National Payments Corporation of India launched the Unified Payments Interface, a system that lets people send money instantly from one bank account to another using only a mobile phone. Unlike earlier methods, which needed account numbers and branch codes, UPI works with a simple virtual address, such as a mobile number or a QR code. A vegetable seller, a taxi driver and a large shop can all accept the same kind of payment, and the money reaches the account within seconds, even on Sundays and public holidays. Because the service is free for most small users and works on basic smartphones, it spread quickly beyond big cities. By 2024, UPI was handling several billion transactions every month, and its design was being studied by other countries that wanted a similar low-cost system. The change matters most for people who were outside the banking system: a worker can now receive wages directly, and a small trader can build a record of receipts that a bank can later use when judging a loan application.

   Q1.According to the passage, UPI was launched by:

   • A.The Reserve Bank of India
   • B.The State Bank of India
   • C.The Ministry of Finance
   • D.The World Bank
   • E.The National Payments Corporation of India

2. Q2.According to the passage, what does UPI use instead of account numbers and branch codes?

   • A.A passbook entry
   • B.An ATM PIN
   • C.A virtual address such as a mobile number or QR code
   • D.A cheque book
   • E.A debit card number

3. Q3.Which of the following is stated as a reason for UPI's rapid spread?

   • A.It is free for most small users and works on basic smartphones
   • B.It pays interest on balances
   • C.It replaces all bank branches
   • D.It works only in big cities
   • E.It needs no mobile phone

Start the test to answer these. Correct answers and explanations are shown after you submit.