PYQ Question

With reference to digital payments, consider the following statements: 1. BHIM app allows the user to tranfer money to anyone with a UPI-enabled bank accou

August 6, 2026 en

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

A. 1 only
B. 2 only
C. Both 1 and 2
D. Neither 1 nor 2

Answer: A

Explanation

Statement 1 is correct: Bharat Interface for Money (BHIM) is a payment app that lets you make simple, easy and quick transactions using Unified Payments Interface (UPI). You can make direct bank payments to anyone on UPI using their UPI ID or scanning their QR with the BHIM app. You can also request money through the app from a UPI ID. Statement 2 is not correct: From a consumer point of view, there are three levels of authentication that are required in this app. One is the device ID and mobile number, then the bank account which you are linking to this app, and the finally the UPI Pin which is needed to complete the transaction. There are three factors of authentication versus a normal net banking app or a chip-pin debit card which will only have two factors of authentication