PART – A: CASE

Q1: Suppose, Government of India is planning to launch a smart card that contains your government-confirmed identity like PAN, Driving License, complete with biometric confirmation as per the UID project, address, mobile number and even your health records. Such a smart card would let you zoom through the entry/exit points on metro stations, as a bus pass, act as identity proof, have your health records accessible anywhere and can also contain your passwords to a number of governmental web sites like IRCTC. One can even buy rail and airport tickets through this smart card and pay in restaurants. Government plans to make this smart card mandatory for use of public utilities in due course of time.

One of the strategic reasons of government for introducing this smart card scheme is that they will be able to track a commuter's movements in metropolitan cities under threat from terrorists. Each card has a unique ID number linked to the registered owner's name, which is recorded together with the location and time of the exchange every time the card is used. The data retained, could be released to law enforcement agencies under certain conditions.

NGO and civil societies groups are protesting against this smart card scheme by maintaining that Government will have an enormous amount of sensitive data about so many people and that this new payment system has many privacy issues related with the way databases are linked in this proposed scheme and these issues are not being addressed by the government.

You are the leading electronic payment system expert in the country and have been approached by the government to suggest a scheme which addresses the security and privacy concerns of the proposed smart card scheme. Design a modified version of the smart card scheme to be submitted to the government.

Q2. 'Financial inclusion' is the delivery of financial services including banking facilities at affordable costs to vast sections of disadvantaged and low income groups. Write your comment on whether mobile banking in India can result in financial inclusion of unbanked regions. Also identify which organizations can provide mobile banking services in India as per the extant RBI guidelines?

Q3. Explain with the help of the diagrams and examples the working of Cheque Truncation System. Also identify the relevant provisions of Information Technology (Amendment) Act, 2008 related to Cheque Truncation.

Q4. Explain the benefits of electronic banking as compared to traditional banking.

Q5. Write Short Notes on any two of the following:

i. Banker/ Customer Relationship

ii. RTGS

iii. Credit Cards