UPSC Previous Year Question | Prelims GS | 2017

Which of the following is a most likely consequence of implementing the 'Unified Payments Interface (UPI)'?

  1. Mobile wallets will not be necessary for online payments.
  2. Digital currency will totally replace the physical currency in about two decades.
  3. FDI inflows will drastically increase.
  4. Direct transfer of subsidies to poor people will become very effective.

Answer

Correct Answer

Mobile wallets will not be necessary for online payments.

Explanation

UPI enables seamless, real-time bank-to-bank transfers via smartphones without needing an intermediary mobile wallet, making mobile wallets less necessary for online payments; the other options are exaggerated or unrelated consequences.

Topics: digital payments and banking technology, economy, unified payments interface, upi impact