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JAIIB RBWM Unit 10 — Credit and Debit Cards: Free MCQs with Explanations

By Swarnakshi Jha (ex-banker) · Updated 20 September 2026 · Paper 4 of the November 2026 cycle (29 November 2026)

This page is a free slice of our JAIIB RBWM question bank for Unit 10 — Credit and Debit Cards (Module B — Retail Products and Recovery). The Mock Centre holds 86 questions on this unit alone, every one with a why-right / why-wrong explanation; below are the facts examiners keep returning to, five of those questions to try, and the traps that cost marks.

RBWM · Module B86 MCQs in the Mock Centre5 free belowPaper on 29 November 2026

Key facts examiners test from this unit

  1. Credit = buy now pay later; debit = buy now pay now; five parties — cardholder, merchant, ACQUIRER (merchant's bank/POS), CLEARING NETWORK (Visa/Master/RuPay), ISSUER; ₹100-crore net worth to enter card business.
  2. History: Diner's Club 1950 → BankAmericard → VISA; ICA 1966 → MasterCard; India's first = CENTRAL BANK OF INDIA; open loop = issuer + separate network.
  3. March 2022: credit 73.62 mn vs debit 917.66 mn; RuPay (NPCI): Select (2020 affluent), Platinum (₹2L cover), Global from 2014; BharatQR = NPCI + MasterCard + Visa, P2M; RuPay-debit MDR zero from 1-1-2020. [Law update, Sep 2026] Aug 2026: Taxation and Other Laws (Amendment) Act 2026 amended Sec. 10A PSS Act — the statutory ban on charges became a Government power to notify charge-free modes; no MDR has been notified, so UPI/RuPay-debit MDR is still zero.
Law update, September 2026. Update: the Taxation and Other Laws (Amendment) Act 2026 (assent 17 August 2026) replaced the outright ban in Sec. 10A of the PSS Act with a power for the Government to notify which electronic modes stay charge-free. No charge has been notified — MDR on UPI and RuPay debit is still zero. RBI's Master Directions on PPIs (27 August 2021) allow a full-KYC PPI to hold up to ₹2 lakh at any time; small PPIs stay at ₹10,000. 'Per the textbook' → ₹1 lakh; 'currently, full-KYC PPI' → ₹2 lakh. Still zero as on September 2026. The August 2026 amendment to Sec. 10A PSS Act only converted the statutory ban into a Government notification power; nothing has been notified.

5 free practice questions — tap an option

Five basic questions from this unit. Answers lock on the first tap, exactly as in the exam, and a short explanation opens underneath. The Mock Centre adds the moderate and tough questions, why every other option is wrong, the concept capsule and the exam tip — with your score and revision dates tracked.

Question 1 of 5
The bank issuing the card and collecting from the customer:
Why (b): The ISSUING bank gave YOU the card and owns your relationship: it fronts your payments and then collects from you at billing. Issuer = your side of the rails.
Question 2 of 5
A debit card works on:
Why (b): A debit card is BUY NOW, PAY NOW — money leaves YOUR account the instant you tap. No credit, no bill, no later.
Question 3 of 5
A co-branded card is:
Why (b): A CO-BRANDED card marries TWO entities' benefits: a bank's card infrastructure plus a partner brand's rewards — fuel points on a bank card, air miles on another.
Question 4 of 5
A cardholder pays only the Minimum Amount Due (MAD) each month. The result is:
Why (b): MAD prevents default reporting but converts the card into very costly revolving credit; interest applies from transaction date on fresh spends too.
Question 5 of 5
A semi-closed PPI (typical wallet) can be used at:
Why (a): Semi-closed instruments work across a network of contracted merchants; cash-out is the OPEN-system privilege (bank-issued).
0 of 5 answered.

Traps in this unit

Confusable AConfusable BThe difference
IssuingAcquiring bankCardholder's vs merchant's banks
NetworkIssuerRails vs lender
Practise all 86 questions on Unit 10. The free demo opens a slice of every subject with the same explanations; the RBWM Online-only pass unlocks all 1,912 RBWM questions, the full and module mocks, Smart Revision and the Readiness Score for one year (₹1,299). Not sure where you stand? Take the free 10-question test first.
Take the free test Open the free demo

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Independent study aid — not affiliated with, endorsed by, or sponsored by the Indian Institute of Banking & Finance (IIBF). Exam pattern, dates, fees and passing criteria are set by IIBF — always confirm the current rules at iibf.org.in. Regulatory figures verified as of September 2026; verify from official sources before relying on them in practice.