Question
UPSC Prelims 2018 Question:
With reference to digital payments, consider the following statements
- BHIM app allows the user to transfer money to anyone with a UPI-enabled bank account.
- 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?
Answer (Detailed Solution Below)
Option 1: 1 only
Detailed Solution
Explanation:
- Bharat Interface for Money (BHIM) is a payment app that lets you make simple, easy and quick transactions using Unified Payments Interface (UPI). One can make direct bank payments to anyone on UPI using their UPI ID or scanning their QR with the BHIM app. So, statement 1 is correct.
- The BHIM apps have three levels of authentication. So, statement 2 is not correct.
- The app binds with a device’s ID and mobile number,
- A user needs to sync whichever bank account (UPI or non-UPI enabled) in order to the conduct transaction.
- When a user sets up the app they are asked to create a pin which is needed to log into the app.
Therefore, option (1) is the correct answer.
Subject: Economics | Money and Banking
Latest UPSC Exam 2026 Updates
Last updated on January, 2026
