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?
1 only
2 only
Both 1 and 2
Neither 1 nor 2
Answer is Right!
Answer is Wrong!
This question was previously asked in
UPSC IAS – 2018
– Statement 2 is incorrect. Let’s analyze the factors of authentication:
– A standard chip-PIN debit card transaction at a POS machine typically involves two factors: something you have (the card) and something you know (the PIN). Online transactions often add a third factor like an OTP (something you receive). The statement claims *four* factors for a chip-PIN card, which is generally not accurate.
– The BHIM app requires unlocking the phone (often using biometrics or PIN – ‘something you are’ or ‘something you know’), logging into the app (requiring an application PIN – ‘something you know’), and then authorizing a transaction using the UPI PIN (‘something you know’). This involves multiple layers of security, effectively utilizing at least three distinct pieces of information or actions for a transaction, not just two.