Which of the following is not the type of digital banking ?

The correct answer is - Central Banking System

Key Points

• Central Banking System
  • The Central Banking System refers to the regulatory body of a nation's monetary system, such as the Reserve Bank of India (RBI), Federal Reserve, or European Central Bank.
  • It primarily focuses on monetary policy, managing currency, and regulating commercial banks, rather than providing digital banking services directly to customers.
  • Unlike digital banking solutions, which facilitate online transactions and account management, the central banking system is not designed for individual customer interactions.

Additional Information

• Types of Digital Banking
  • Unified Payment Interface (UPI): A real-time payment system that allows instant fund transfers between two bank accounts via a mobile application.
  • Internet Banking: A system that enables customers to conduct financial transactions online through a bank's website.
  • Mobile Banking: Banking services offered through a mobile application, including fund transfers, bill payments, and balance inquiries.
• Key Differences
  • Digital banking focuses on customer-centric services, while the central banking system is more policy-driven.
  • Examples of digital banking involve direct interaction with customers, whereas the central banking system operates at a macro level to regulate the financial ecosystem.
• Exam Tip
  • Always distinguish between services offered for customer convenience (e.g., UPI, Internet Banking) and regulatory systems (e.g., Central Banking System) when answering such questions.