Briefly explain the term credit card.

Question 11 of 22

Q. Briefly explain the term credit card.

Tamil Nadu DgeTamil Nadu HSC First Year (DGE) Commerce Board 2020Subjective· 2mImportance★★★★★

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A credit card is a bank-issued plastic card that lets the holder buy goods and services on credit up to a pre-set limit and pay the bank later.

In the Tamil Nadu HSC Commerce syllabus, credit cards are studied as a modern general-utility/payment service of banks:

A credit card is issued by a bank or financial institution to eligible customers.
It allows the holder to buy goods and services on credit, i.e. without paying cash immediately, up to a sanctioned credit limit.
The bank pays the seller on the customer's behalf, and the cardholder repays the bank later, generally within an interest-free period; if payment is delayed beyond the due date, interest/charges are levied. …

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Same / Similar Concept — real previous-year questions on the same or a closely similar concept, not this exact question.

CBSE 2026Set MARCH1 markMCQ
$Q. Minimum how much amount can be transferred through RTGS?$
(a) Any amount
(b) 50,000
(c) 2 lakh
(d) 5 lakh
›Reveal solutionSolution
The minimum amount for an RTGS transfer is ₹2 lakh, so the answer is (c).

Among the general utility services of commercial banks is electronic funds transfer. RTGS — Real Time Gross Settlement — settles transactions individually and instantly (in real time) rather than in batches.

Key point:

RTGS is built for large-value payments, so the RBI fixes a minimum of ₹2,00,000 per transaction. …
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CBSE 2024Set MARCH1 markMCQ
$Q. Minimum how much amount can be transferred through RTGS ?$
(a) Rs. 2 Lakhs
(b) Any amount
(c) Rs. 5 Lakhs
(d) Rs. 50,000
›Reveal solutionSolution

The minimum amount transferable through RTGS is Rs. 2 Lakhs, option (a).

Among the general-utility (electronic fund transfer) services offered by commercial banks, RTGS — Real Time Gross Settlement — is the system used for high-value money transfers that are settled individually and in real time. Because it is intended for large-value transactions, RTGS carries a minimum limit of Rs. 2 lakh per transaction; there is no u …

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CBSE 2020Set MARCH1 markMCQ
$Q. In India RuPay card services were launched in :$
(a) March 2014
(b) March 2013
(c) March 2010
(d) March 2012
›Reveal solutionSolution
The correct answer is (d) March 2012. RuPay, India's indigenous card payment network, was launched by NPCI in March 2012.

As a general utility service, banks issue payment cards to customers. RuPay is significant in the Tamil Nadu HSC Commerce syllabus as India's home-grown card scheme:

RuPay was conceived and launched by the National Payments Corporation of India (NPCI) as an alternative to foreign card networks so that card transactions are processed within India, cutting cost and increasing security. …
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Q.Briefly explain the term credit card.

Concept understanding — Secondary Functions — General Utility Functions

Q.Briefly explain the term credit card.

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