Which of the following is a most likely consequence of implementing th

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

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Mobile wallets will not be necessary for online payments.

Digital currency will totally replace the physical currency in about two decades.

FDI inflows will drastically increase.

Direct transfer of subsidies to poor people will become very effective.

Answer is Right!

Answer is Wrong!

This question was previously asked in

UPSC IAS – 2017

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The correct answer is A) Mobile wallets will not be necessary for online payments.

The Unified Payments Interface (UPI) enables instant transfer of money directly between any two bank accounts using a mobile platform. It simplifies digital payments by allowing direct debits and credits from bank accounts linked via a UPI ID or mobile number. This significantly reduces the dependency on pre-loading money into separate mobile wallets for many online transactions, making mobile wallets less necessary for *all* online payments compared to the pre-UPI era.

Option B is a radical and unlikely outcome within a couple of decades. Physical currency still serves essential functions. Option C is speculative; while improved digital infrastructure can support economic activity, a drastic increase in FDI is not a direct or guaranteed consequence of UPI implementation. Option D is plausible as UPI facilitates direct bank transfers useful for subsidies (DBT), but existing systems also enable this. UPI’s most direct and noticeable impact is on the payment methods available to individuals and businesses, particularly reducing reliance on wallets.

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