UPSC Previous Year Question | Prelims GS | 2018

With reference to digital payments, consider the following statements: 1. BHIM app allows the user to transfer money to anyone with a UPI-enabled bank account. 2. While a chip-pin debit card has four factors of authentication, BHIM app has only two factors of authentication. Which of the statements given above is/are correct?

  1. 1 only
  2. 2 only
  3. Both 1 and 2
  4. Neither 1 nor 2

Answer

Correct Answer

1 only

Explanation

Statement 1 is correct: BHIM, built on UPI, lets users send money to anyone with a UPI-enabled bank account. Statement 2 is wrong: a chip-and-PIN card uses two factors (the card and the PIN), whereas BHIM adds device/mobile-number binding along with the UPI PIN, so the comparison is reversed.

Topics: banking and finance, bhim app and upi, digital payments, economy