📚 Part of: Current Affairs And Historical Mcqs: 2021 Quiz

What is the percentage of cash back if corporate (Non BTC) recharge their wallet for 6.5 lakh?

Category: Miscellaneous Indian Gk

Correct Answer: D) 4.5%.

Exam Relevance: UPSC, SSC, Banking Exams, MBA Entrance Exams

Difficulty: Moderate

Concept notes:

Corporate wallets are digital wallets used by businesses for various transactions. Cash back schemes are incentives offered by financial institutions or service providers to encourage usage of their services. The cash back percentage is a fixed rate applied to the amount recharged into the wallet, which is then credited back to the wallet as a reward.

Common Mistakes:
  • Confusing the cash back percentage with the total amount credited back.
  • Misunderstanding the terms of the cash back scheme.
  • Incorrectly applying the percentage to the recharge amount.
Explanation:

Corporate wallets are digital wallets designed for business transactions. These wallets often come with various incentives, such as cash back schemes, to encourage their usage. The cash back scheme is a financial incentive where a certain percentage of the amount recharged into the wallet is credited back to the wallet as a reward.

In the context of the question, the cash back percentage for a corporate (Non BTC) wallet recharge of 6.5 lakh is 4.5%. This means that for every 6.5 lakh recharged into the wallet, 4.5% of that amount is credited back as cash back. The cash back percentage is a fixed rate and is applied uniformly to all recharges within the specified category.

To understand the calculation, let's break it down:

- The recharge amount is 6.5 lakh.

- The cash back percentage is 4.5%.

The cash back amount can be calculated as follows:

\[ \text{Cash Back Amount} = \text{Recharge Amount} \times \left(\frac{\text{Cash Back Percentage}}{100}\right) \]

\[ \text{Cash Back Amount} = 650,000 \times \left(\frac{4.5}{100}\right) \]

\[ \text{Cash Back Amount} = 650,000 \times 0.045 \]

\[ \text{Cash Back Amount} = 29,250 \]

Therefore, for a recharge of 6.5 lakh, the cash back amount would be 29,250. This calculation demonstrates the application of the cash back percentage to the recharge amount.

It is important to note that the cash back percentage can vary based on the terms and conditions of the wallet provider. Students should be aware of the specific cash back rates for different types of transactions and wallets to avoid confusion. Additionally, understanding the concept of cash back and how it is calculated is crucial for managing corporate finances effectively and maximizing the benefits of digital wallets.

Option Analysis:
  • Option A: This option is incorrect. The cash back percentage for a corporate (Non BTC) wallet recharge of 6.5 lakh is not 4.60%. The correct percentage is 4.5%, as per the terms of the cash back scheme. Students might choose this option if they misread the percentage or if they are not familiar with the specific cash back rates for corporate wallets.
  • Option B: This option is incorrect. The cash back percentage for a corporate (Non BTC) wallet recharge of 6.5 lakh is not 6%. The correct percentage is 4.5%. Students might choose this option if they are familiar with higher cash back rates for other types of transactions or if they have misread the terms of the cash back scheme.
  • Option C: This option is incorrect. The cash back percentage for a corporate (Non BTC) wallet recharge of 6.5 lakh is not 2.50%. The correct percentage is 4.5%. Students might choose this option if they are familiar with lower cash back rates for other types of transactions or if they have misread the terms of the cash back scheme.
  • Option D: This option is correct. The cash back percentage for a corporate (Non BTC) wallet recharge of 6.5 lakh is 4.5%. This is the correct rate as per the terms of the cash back scheme. Students should verify the specific cash back rates for corporate wallets to avoid confusion with other types of transactions.
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