Which of the following is a plastic money?

Debit card

The correct answer is option 1- Debit card.

Debit card is known as plastic money.

Credit or Debit Cards: Popularly referred to as ‘plastic money,’ these cards are the most widely used medium for online transactions. In fact, about 95 per cent of online consumer transactions are executed with a credit card. Credit card allows its holder to make purchase on credit. The amount due from the card holder to the online seller is assumed by the card issuing bank, who later transfers the amount involved in the transaction to the credit of the seller. Buyer’s account is debited, who often enjoys the freedom to deposit the amount in instalments and at his convenience. Debit card allows its holder to make purchases through it to the extent of the amount lying in the corresponding account. The moment any transaction is made, the amount due as payment is deducted electronically from the card. To accept credit card as an online payment type,the seller first needs a secure means of collecting credit card information from its customer. Payments through credit cards can be processed either manually, or through an online authorisation system.

OTHER OPTIONS-

• Cheque- A cheque is a written, dated, and signed instrument that directs a bank to pay a specific sum of money to the bearer of the cheque or to the person named on the cheque. It's one of the oldest forms of non-cash payment methods.

• NEFT- NEFT stands for National Electronic Funds Transfer. It's a nationwide payment system that enables individuals and businesses to electronically transfer funds from one bank account to another in India. NEFT transactions are processed in batches at scheduled intervals throughout the day.

• RTGS- RTGS stands for Real Time Gross Settlement. It's another electronic payment system used for large-value transactions in India. Unlike NEFT, RTGS transactions are processed individually and settle in real-time, meaning the funds are transferred immediately and on a gross basis (transaction by transaction) without any netting off against other transactions.