CS Professional · Banking and Insurance - Laws and Practice · Digital Banking
Under Section 23A of the Payment and Settlement Systems Act, 2007, the RBI requires a designated payment system to deposit a percentage of customer funds collected and still outstanding. If outstanding collections are ₹50 crore and the RBI specifies 20%, what amount must be kept in a separate account with a scheduled commercial bank (or as liquid assets)?
₹10 crore. Section 23A(1) requires an amount equal to the RBI-specified percentage of customer amounts collected and outstanding; 20% of ₹50 crore is ₹10 crore, held in a separate account with a scheduled commercial bank or as liquid assets.
- A₹5 crore
- B₹10 croreCorrect
- C₹20 crore
- D₹40 crore
Explanation
Section 23A(1) applies the specified percentage to amounts collected and remaining outstanding. 20% of ₹50 crore = ₹10 crore. Check: 10/50 = 0.20.
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