Q.1-10. Read the following passage carefully and answer the questions given below it. Certain words have been printed in bold to help you locate them while answering some questions.
The Reserve Bank of India (RBI) stipulated that debit cards would be issued to customers having Savings Bank and Current Accounts but not to cash credit or loan account holders. Banks may issue only online debit cards, including co-branded debit cards where there is an immediate debit to the customers’ account, and where straight through processing is involved.
Banks are, henceforth, not permitted to issue offline-debit cards. Banks which are now issuing offline debit cards may conduct a review of their offline debit card operations and discontinue operations of such cards within a period of six months from the date of the circular issued.
Banks were also asked to ensure that customers were duly informed regarding switching over to online debit cards. However, till such time as offline cards were phased out, the outstanding balances / unspent balances stored on the cards would be subject to computation of reserve requirements.
As per the notification, no bank shall dispatch a card to a customer unsolicited, except in the case where the card is a replacement for a card already held by the customer. Each bank shall make available to the cardholders in writing, a set of contractual terms and conditions governing the issue and use of such a card. These terms shall maintain a fair balance between the interests of the parties concerned and shall be expressed clearly.
The terms shall specify that the bank shall be responsible for direct losses incurred by a cardholder due to a system malfunction directly within the bank’s control. However, banks would not be held liable for any loss caused by a technical breakdown of the payment system if the breakdown of the system was recognizable for the cardholder by a message on the display of the device or otherwise known. The responsibility of the bank for the non-execution or defective execution of the transaction is limited to the principal sum and the loss of interest subject to the provisions of the law governing the terms.
With a view to reducing the instances of misuse of lost/stolen cards, the apex bank asked banks to issue cards with photographs of the cardholder or any other advanced methods that may evolve from time to time. Banks should undertake review of their operations/issue of debit cards on half-yearly basis. The review would include, inter-alia, card usage analysis, including cards not used for long durations due to their inherent risks.
Banks were asked to ensure to put in place an effective mechanism for redressal of customer complaints. The name, designation, address and contact number of important executives as well as the grievance redressal officer of the bank may be displayed on the website. Also, there should be a system of acknowledging customers’ complaints for follow-up, such as complaint number / docket number.
Q.1. Why have banks been asked to discontinue their offline debit card operations?
(1) Offline debit card issuing system has been facing problems for quite sometime
(2) As per the new circular, debit cards will be issued online only
(3) Banks should make use of the latest technology available
(4) With offline debit card system any transaction takes a long time.
(5) None of these
Q.2. Which of the following has been referred as ‘Apex bank’ in the passage?
(1) Bank Issuing the online debit card
(2) Bank which still offers offline debit cards
(3) Every bank which is governed by RBI
(4) Reserve Bank of India
(5) None of these
Q.3. Which of the following is/are essential to be displayed on website for redressal of customer complaints?
A. Complaint number / docket number
B. Complaint type
C. Details of grievance redressal officer of the bank
D. Details of important executives
(1) Only C (2) Only A and C (3) All except B (4) All except A (5) All of the above
Q.4. How much time have the banks been given to discontinue operations of offline debit cards?
(1) 1 year (2) 3 months (3) 1 month (4) 6 months (5) 2 weeks
Q.5. Which of the following is FALSE, according to the passage?
(1) Every year Banks should undertake review of their operations/issue of debit cards.
(2) Banks should resort to advanced methods to reduce the instances of misuse of lost/stolen cards
(3) Bank would be responsible for direct losses incurred by a cardholder because of a system malfunction directly within the bank’s control
(4) Each bank should make available to the cardholders in writing, a set of contractual terms and conditions governing the issue and use of a debit card
(5) All of the above
Q.6. Which of the following should maintain a fair balance between the interests of the parties concerned, as per the notification?
(1) Contractual terms
(2) Circular issued
(3) Review of banks’ operations/issue of debit cards
(4) System of acknowledging customers’ complaints
(5) Not mentioned in the passage
Q.7-8.Choose the word most similar in meaning to the word printed in bold, as used in the passage.
Q.7. Liable
(1) Responsible (2) Innocent (3) Caught (4) Inclined (5) Disciplined
Q.8. Duly
(1) Suitably (2) Equally (3) Nicely (4) Properly (5) Liberally
Q.9-10.Choose the word which is most nearly the OPPOSITE in meaning as the word printed in bold as used in the passage.
Q.9. Inherent
(1) Integral (2) External (3) Essential (4) Incidental (5) Original
Q.10. Dispatch
(1) Hurry (2) Send (3) Receive (4) Perform (5) Destroy
Answers
Q.1.(2) Q.2.(4) Q.3.(3)Q.4.(4) Q.5.(1)Q.6.(1) Q.7.(1) Responsible
Q.8.(4) Properly Q.9.(2) External Q.10.(3) Receive
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