Economy
2018
Banking in India
Government Schemes

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
  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?

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

Correct Answer: Option A

The question concerns digital payments, specifically the BHIM app and its security features.

Statement 1 is correct because the BHIM app utilizes UPI (Unified Payments Interface), enabling users to transfer money to anyone with a UPI-enabled bank account.

Statement 2 is incorrect because a standard chip-pin debit card does not inherently have four factors of authentication. Furthermore, the BHIM app uses three factors of authentication: device ID, mobile number, and UPI PIN.

Hence, only statement 1 is correct.

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