Directions (1-10): In the given passage, answer the following questions according to the idea expressed in the passage.
Promotion of a digital economy is an integral part of Government’s strategy to clean the system and weed out corruption and black money. It has a transformative impact in terms of greater formalisation of the economy and mainstreaming of financial savings into the banking system. This, in turn, is expected to energise private investment in the country through lower cost of credit. India is now on the cusp of a massive digital revolution.
A shift to digital payments has huge benefits for the common man. The earlier initiative of our Government to promote financial inclusion and the JAM trinity were important precursors to our current push for digital transactions. Already there is evidence of increased digital transactions. The BHIM app has been launched. It will unleash the power of mobile phones for digital payments and financial inclusion. 125 lakh people have adopted the BHIM app so far. The Government will launch two new schemes to promote the usage of BHIM; these are, Referral Bonus Scheme for individuals and a Cashback Scheme for merchants.
Aadhar Pay, a merchant version of Aadhar Enabled Payment System, will be launched shortly. This will be specifically beneficial for those who do not have debit cards, mobile wallets and mobile phones. A Mission will be set up with a target of 2,500 crore digital transactions for 2017-18 through UPI, USSD, Aadhar Pay, IMPS and debit cards. Banks have targeted to introduce additional 10 lakh new PoS terminals by March 2017. They will be encouraged to introduce 20 lakh Aadhar based PoS by September 2017. Increased digital transactions will enable small and micro enterprises to access formal credit. Government will encourage SIDBI to refinance credit institutions which provide unsecured loans, at reasonable interest rates, to borrowers based on their transaction history.
The digital payment infrastructure and grievance handling mechanisms shall be strengthened. The focus would be on rural and semi urban areas through Post Offices, Fair Price Shops and Banking Correspondents. Steps would be taken to promote and possibly mandate petrol pumps, fertilizer depots, municipalities, Block offices, road transport offices, universities, colleges, hospitals and other institutions to have facilities for digital payments, including BHIM App. A proposal to mandate all Government receipts through digital means, beyond a prescribed limit, is under consideration. Government will strengthen the Financial Inclusion Fund to augment resources for taking up these initiatives. Government will consider and work with various stakeholders for early implementation of the interim recommendations of the Committee of Chief Ministers on digital transactions.
The Committee on Digital Payments constituted by Department of Economic Affairs has recommended structural reforms in the payment eco system, including amendments to the Payment and Settlement Systems Act,2007. Government will undertake a comprehensive review of this Act and bring about appropriate amendments. To begin with, it is proposed to create a Payments Regulatory Board in the Reserve Bank of India by replacing the existing Board for Regulation and Supervision of Payment and Settlement Systems. Necessary amendments are proposed to this effect in the Finance Bill 2017. As we move faster on the path of digital transactions and cheque payments, we need to ensure that the payees of dishonoured cheques are able to realise the payments. Government is therefore considering the option of amending the Negotiable Instruments Act suitably.
Q1. What is the aim of digital economy according to this passage?
(a) to earn money in digits
(b) to energise private investment in the country through lower cost of credit.
(c) an economy where people borrow from government.
(d) a system that checks hawala money.
(e) None of the above
Q2. How many additional new PoS terminals will be introduced by Banks till March 2017.
(a) 20 lakh
(b) 5 lakh
(c) 15 lakh
(d) 10 lakh
(e) None of the above
Q3. What is the name of the App that has provided increased digital transactions?
(a) POCKETS
(b) SBI BUDDY
(c) UPI
(d) BHIM
(e) None of the above
Q4. How many people have adopted the BHIM app so far?
(a) 125 lakh
(b) 125 crore
(c) 125 million
(d) 15 lakh
(e) None of the above
Q5. Which of the following is inappropriate statement according to the given Passage?
(a) Aadhar Pay, a merchant version of Aadhar Enabled Payment System, will be launched shortly
(b) Digital Economy will help to weed out the corruption from the system
(c) Government is considering the option of amending the Negotiable Instruments Act suitably.
(d) The Increased digital transactions will disable small and micro enterprises to access formal credit.
(e) None of the above
Q6. What will be the appropriate Title for the given passage?
(a) Digital Money
(b) Online Transactions
(c) Digital Economy
(d) Economical Survey
(e) None of the above
Q7. Name the Scheme to be launched shortly by the government which will be beneficial for those who do not have debit cards, mobile wallets and mobile phones
(a) UPI
(b) Aadhar Pay
(c) Jan Dhan Yojna
(d) BHIM
(e) None of the above
Q8. What are the two new schemes to be launched by The Government to promote the usage of BHIM?
(a) unlimited free transactions for pregnant women and cashback for merchants
(b) cashback for senior citizens and free download for kids
(c) Referral Bonus Scheme for individuals and a Cashback Scheme for merchants.
(d) Referral Bonus Scheme for merchants and a Cashback Scheme for individuals.
(e) None of the above
Q9. What is the meaning of the phrase ‘Weed out’ as used in the given passage?
(a) to eliminate anything unwanted
(b) To smoke weed
(c) to reprimand
(d) to demolish
(e) None of the above
Q10. What is the name of the board that will replace Regulation and Supervision of Payment and Settlement Systems in the Reserve Bank of India?
(a) a Supervisory board
(b) a demonization board
(c) a Payments Regulatory Board
(d) an online payment board
(e) None of the above
SOLUTIONS
S1. Ans.(b)
Sol. to energise private investment in the country through lower cost of credit.
S2. Ans.(d)
Sol. 10 lakh
S3. Ans.(d)
Sol. BHIM
S4. Ans.(a)
Sol. 125 lakh
S5. Ans.(d)
Sol. The Increased digital transactions will disable small and micro enterprises to access formal credit.
S6. Ans.(c)
Sol. Digital Economy
S7. Ans.(b)
Sol. Aadhar Pay
S8. Ans.(c)
Sol. Referral Bonus Scheme for individuals and a Cashback Scheme for merchants.
S9. Ans.(a)
Sol. to eliminate anything unwanted
S10. Ans.(c)
Sol. a Payments Regulatory Board
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