ATMs MCQ Quiz - Objective Question with Answer for ATMs - Download Free PDF
The ATM topic is essential for all Indian competitive exams, including SSC, PSC, UPSC railway, and banking. A teller machine, which stands for automated teller machine, is a specialised computer that makes managing a bank account holder's funds easier. This type of question is asked by the ATM, to match the flowing, statement-based, fill-in-the-blanks. We must carefully study the question before deciding which of the available options best describes the ATM question. Once we've narrowed down our choice, we must cross that option out. We should also point out that we always prefer to use quality reference materials, such as the first, newspaper,bussiness standard, the Hindu Times of India, and Dainik Jagran national edition, air news and give more and more test, and more revisions.
Latest ATMs MCQ Objective Questions
ATMs Question 1:
Which is India's first White Label ATM?
- Vakrangee
- Indicash
- India1ATM
- Money Spot ATM
Answer (Detailed Solution Below)
Option 2 : Indicash
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ATMs Question 1 Detailed Solution
The correct answer is Indicash.
Key Points
- Indicash is the first White Label ATM in India. It was established by Tata Communications Payment Solutions Limited (TCPSL).
- The first machine was rolled out in Chandrapada, a small village in the Thane district of Maharashtra on 27th June 2013.
- Indicash marked the advent of White Label ATMs (WLAs), which are set up, owned, and operated by non-banking entities. Before this, only banks could set up and operate ATMs in India.
- Indicash ATMs serve the customers of all banks and increase financial inclusion by extending ATM services to even the unbanked rural areas of India.
- WLAs like Indicash help to ease the pressure on the ATM networks of individual banks and contribute to the expansion of ATM infrastructure countrywide.
- An important aspect to note about Indicash, as a WLA, is that it does not bear any bank's logo. However, it is linked to various national financial networks such as VISA, MasterCard, RuPay so customers from any bank can use the service.
- By 2023, they have set up thousands of Indicash ATMs countrywide in their ambition to support the Government of India's agenda of financial inclusion.
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ATMs Question 2:
ATMs set up, owned and operated by non-banks are called:
- White Label ATMs
- Orange Label ATMs
- Brown Label ATMs
- Yellow Label ATMs
Answer (Detailed Solution Below)
Option 1 : White Label ATMs
ATMs Question 2 Detailed Solution
The correct answer is White Label ATMs.
Key Points
White Label ATM:
- ATMs set up, owned, and operated by non-banks are called white label ATMs .
- They are authorized under the Payment and Settlement Systems Act, 2007 , by the Reserve Bank of India.
- Using these ATMs is similar to using an ATM of a bank other than the bank where you have your account.
- ATM service providers have been allowed to start ATMs that can increase the penetration and availability of ATMs.
- RBI has allowed these ATM service providers to take some additional measures that could improve their financial viability .
- There are eight white label ATM operators in the country.
- White label ATMs were not allowed to accept cash deposits.
- They can also offer bill payment services through their ATMs.
- There are also brown-label ATMs that are owned by these operators but are leased out to banks. Such ATMs operate like the ones belonging to the bank itself, including having the bank’s branding.
- White label ATMs do not charge any extra fees for transactions.
Additional Information
Tata Communications Payment Solutions Limited:
- It was launched India's first White label ATM - Indicash.
- Indicash (‘India’ and ‘cash’) , marks a milestone for the country and ushers in a new era of ATM accessibility for the masses across cities, towns, and villages.
- Backed by the $100.09 billion Tata brand , India’s first network of white label ATMs is aimed at empowering millions of Indians with the convenience to access their own money with ease.
- Indicash was launched at Chandrapada, Maharashtra.
- This launch was led by a senior Reserve Bank of India (RBI) official, Vinod Kumar , Managing Director and CEO, Tata Communications, and Sanjeev Patel , CEO, Tata Communications Payment Solutions Limited.
- Tata Communications Payment Solutions Limited (TCPSL) is a wholly-owned subsidiary of Tata Communications Ltd.
- Indicash is the largest White Label ATM network in the country today and the second largest in rural geographies.
- Founded in 2008.
- Headquarters: Mumbai
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ATMs Question 3:
Which among the following is the first bank that introduced ATM in India?
Answer (Detailed Solution Below)
Option 4 : HSBC
ATMs Question 3 Detailed Solution
The correct answer is HSBC.
Key Points
- HSBC:
- It Stands for Hongkong and Shanghai Banking Corporation Limited.
- HSBC is one of the world’s largest banking and financial services organizations that serves more than 40 million customers through our global businesses.
- It has branches in 64 countries.
- It Started Operations on March 3, 1865.
- It was the first locally-owned bank to operate according to Scottish banking principles.
- HSBC is the first bank that introduced ATM (Automated Teller Machine) in India.
Additional Information
- Stands for Automated Teller Machine.
- ATM are data terminals for convenient money transactions.
- Inventor: Don Wetzel.
- In India, ATM was introduced by HSBC Bank in 1987.
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ATMs Question 4:
What are Green Label ATMs?
- ATMs are installed for the transaction related to agriculture.
- ATM is meant only for Women.
- ATMs are used in the share transaction.
- ATMs are not owned by the bank instead they are taken on lease to provide the service to the customer.
- ATMs are located in various places except inside the bank premises.
Answer (Detailed Solution Below)
Option 1 : ATMs are installed for the transaction related to agriculture.
ATMs Question 4 Detailed Solution
The correct answer is ATMs are installed for the transaction related to agriculture .
Key Points
Automated Teller Machines (ATMs) can be categorised as follows-
- Yellow Label ATMs- They provide E-Commerce transactions.
- Green Label ATMs- They provide agricultural services.
- Orange Label ATMs- They provide share transactions.
- Pink Label ATMs- They are for use by females only.
- White Label ATMs- They are owned by non-banking entities.
- Brown Label ATMs- They are not owned by the bank instead they are taken on lease to provide the service to the customer.
Important Points
- Onsite Automated Teller Machines (ATMs) are set up on the premises where there is a bank branch so that both the physical branch and the ATM can be used.
- As of June 2022, there are 120241 onsite ATMs in India.
- Offsite Automated Teller Machines (ATMs) are set up on a standalone basis where there is no presence of a bank.
- As of June 2022, there are 97447 ATMs in India.
- Tata Communications Payment Solutions (TCPS), a wholly owned subsidiary of Tata Communications, launched the first White Label ATM (WLA) in 2013.
Additional Information
- All the financial transactions related to agriculture and its allied activities can be performed at green-label ATMs.
- India1 Payments Limited (formerly BTI Payments Private Limited) has received a perpetual licence from the Reserve Bank of India to set up, own and operate white label ATMs (WLAs) in India in March 2022.
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ATMs Question 5:
What are Brown Label ATMs?
- ATMs are inside the bank compound and hence are known as Onsite ATMs.
- ATMs are located in various places except inside the bank premises.
- ATM are meant only for Women.
- ATMs are used in the share transaction.
- ATMs are not owned by the bank instead they are taken on lease to provide the service to the customer.
Answer (Detailed Solution Below)
Option 5 : ATMs are not owned by the bank instead they are taken on lease to provide the service to the customer.
ATMs Question 5 Detailed Solution
The correct answer is ATMs are not owned by the bank instead they are taken on lease to provide the service to the customer.
Key Points
- Yellow Label ATMs- They provide E-Commerce transactions.
- Green Label ATMs- They provide agricultural services.
- Orange Label ATMs- They provide share transactions.
- Pink Label ATMs- They are for use of females only.
- White Label ATMs- They are owned by non-banking entities.
- Brown Label ATMs- They are not owned by the bank instead they are taken on lease to provide the service to the customer.
Important Points
- Onsite Automated Teller Machines (ATMs) are set up on the premises where there is a bank branch so that both the physical branch and the ATM can be used.
- As of June 2022, there are 120241 onsite ATMs in India.
- Offsite Automated Teller Machines (ATMs) are set up on a standalone basis where there is no presence of a bank.
- As of June 2022, there are 97447 ATMs in India.
- Tata Communications Payment Solutions (TCPS), a wholly owned subsidiary of Tata Communications, launched the first White Label ATM (WLA) in 2013.
Additional Information
- In Brown Label ATMs, the hardware is owned by the service provider, but cash management and network connectivity are provided by the sponsor bank to save costs.
- The ATM machine contains the logo of the sponsor bank.
- These ATMs are operated by a third party on a contractual basis.
- John Adrian Shepherd-Barron was an Indian-born Britisher who invented the ATM.
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Top ATMs MCQ Objective Questions
ATMs Question 6
What is White label ATM?
- ATM set up by Commercial Banks
- ATM set up by Scheduled Banks
- ATM set up by Non-Banks.
- ATM Franchise set up by Foreign Banks
- None of these.
Answer (Detailed Solution Below)
Option 3 : ATM set up by Non-Banks.
ATMs Question 6 Detailed Solution
The Correct answer is ATM set up by Non-Banks.
Key Points
White Label ATM:
- ATMs set up, owned, and operated by non-banks are called white label ATMs.
- They are authorized under the Payment and Settlement Systems Act, 2007, by the Reserve Bank of India.
- Using these ATMs is similar to using an ATM of a bank other than the bank where you have your account.
- ATM service providers have been allowed to start ATMs that can increase the penetration and availability of ATMs.
- RBI has allowed these ATM service providers to take some additional measures that could improve their financial viability.
- There are eight white label ATM operators in the country.
- White label ATMs were not allowed to accept cash deposits.
- They can also offer bill payment services through their ATMs.
- There are also brown-label ATMs that are owned by these operators but are leased out to banks. Such ATMs operate like the ones belonging to the bank itself, including having the bank’s branding.
- White label ATMs do not charge any extra fees for transactions.
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ATMs Question 7
Which of the following is the first bank that introduced ATM in India?
- SBI
- HSBC
- ICICI
- IDFC
- None of these
Answer (Detailed Solution Below)
Option 2 : HSBC
ATMs Question 7 Detailed Solution
The Correct answer is HSBC.
- SBI is not the correct answer as the first atm was set by HSBC in 1987.
Key Points
- HSBC:
- It Stands for Hong Kong and Shanghai Banking Corporation Limited.
- HSBC is one of the world’s largest banking and financial services organizations that serves more than 40 million customers through our global businesses.
- It has branches in 64 countries.
- It Started Operations on March 3, 1865.
- It was the first locally-owned bank to operate according to Scottish banking principles.
- HSBC is the first bank that introduce ATM (Automated Teller Machine) in India.
Additional Information
- Stands for Automated Teller Machine.
- ATM are data terminals for convenient money transactions.
- Inventor: Don Wetzel.
- In India, ATM was introduced by HSBC Bank in 1987.
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ATMs Question 8
Fraudsters often use a device that can be installed at gas pumps or ATM machines to collect card data. What is the name of the device?
- Skimming
- Phisinhg
- Spoofing
- Smishing
- SIM Swap
Answer (Detailed Solution Below)
Option 1 : Skimming
ATMs Question 8 Detailed Solution
The correct answer is Skimming.
Key Points
Skimming is an act of stealing information through the magnetic strip on the cards that are used in ATMs and merchant establishments.
Fraudsters collect information from a credit/debit/ATM card by reading the magnetic strip on the reverse of the card.
Fraudsters install skimming devices in ATM machines and steal information from customers’ cards.
This information is then used to create a duplicate card and withdraw cash from the customer’s account.
Skimming can occur in ATMs, restaurants, shops, or other locations.
Rising in the number of ATM frauds, the Reserve Bank of India (RBI) has directed banks to upgrade their ATMs and implement anti-skimming and whitelisting solutions.
Anti-skimming devices prevent the skimmer from functioning. Similarly, whitelisting solutions allow only trusted applications to work on the ATM and block any other application.
Smishing:
It is a mixture of short message service (SMS - also referred to as text messaging) and phishing (the act of emailing someone with the intent of getting personal data that may be used for identity theft).
Additional Information
- Phishing:
- Phishing is a global problem faced by Banks worldwide. It is an attempt to 'fish' for your banking details. Phishing might be an e-mail that appears to be from a notable establishment like banks / a popular website.
- Website spoofing is the act of making a website, a hoax, to perform fraud. To form spoof sites that appear legitimate, phishers use the names, logos, graphics, and even code of the particular website.
- They can even fake the Uniform Resource Locator (URL) that seems within the address field at the top of your browser window and the Padlock icon that seems at the bottom right corner.
A mobile phone is a convenient banking channel. One will get account-related alerts, One Time Password (OTP), Unique registration number (URN), 3D secure code, etc. needed for money transactions and make varied money inquiries through the mobile.
Under SIM swap/exchange, fraudster manages to obtain a new SIM card issued for your registered mobile number through the mobile service provider. With the help of the new SIM, card fraudster gets URN/OTP & alerts needed for doing money transactions through your bank account.
