{"id":91553,"date":"2025-06-01T10:59:53","date_gmt":"2025-06-01T10:59:53","guid":{"rendered":"https:\/\/exam.pscnotes.com\/mcq\/?p=91553"},"modified":"2025-06-01T10:59:53","modified_gmt":"2025-06-01T10:59:53","slug":"with-reference-to-digital-payments-consider-the-following-statements","status":"publish","type":"post","link":"https:\/\/exam.pscnotes.com\/mcq\/with-reference-to-digital-payments-consider-the-following-statements\/","title":{"rendered":"With reference to digital payments, consider the following statements:"},"content":{"rendered":"<p>With reference to digital payments, consider the following statements:<\/p>\n<ul>\n<li>BHIM app allows the user to transfer money to anyone with a UPI-enabled bank account.<\/li>\n<li>While a chip-pin debit card has four factors of authentication, BHIM app has only two factors of authentication.<\/li>\n<\/ul>\n<p>Which of the statements given above is\/are correct?<\/p>\n<p>[amp_mcq option1=&#8221;1 only&#8221; option2=&#8221;2 only&#8221; option3=&#8221;Both 1 and 2&#8243; option4=&#8221;Neither 1 nor 2&#8243; correct=&#8221;option1&#8243;]<\/p>\n<div class=\"psc-box-pyq-exam-year-detail\">\n<div class=\"pyq-exam\">\n<div class=\"psc-heading\">This question was previously asked in<\/div>\n<div class=\"psc-title line-ellipsis\">UPSC IAS &#8211; 2018<\/div>\n<\/div>\n<div class=\"pyq-exam-psc-buttons\"><a href=\"\/pyq\/pyq-upsc-ias-2018.pdf\" target=\"_blank\" class=\"psc-pdf-button\" rel=\"noopener\">Download PDF<\/a><a href=\"\/pyq-upsc-ias-2018\" target=\"_blank\" class=\"psc-attempt-button\" rel=\"noopener\">Attempt Online<\/a><\/div>\n<\/div>\n<section id=\"pyq-correct-answer\">\nThe correct answer is A) 1 only.<br \/>\n<\/section>\n<section id=\"pyq-key-points\">\n&#8211; Statement 1 is correct. The BHIM (Bharat Interface for Money) app is based on the Unified Payments Interface (UPI). UPI allows users to link their bank accounts and make instant money transfers using a Virtual Payment Address (VPA), mobile number, account number and IFSC, or Aadhaar. Therefore, a user can transfer money to anyone who has a bank account enabled for UPI.<br \/>\n&#8211; Statement 2 is incorrect. Let&#8217;s analyze the factors of authentication:<br \/>\n    &#8211; 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.<br \/>\n    &#8211; The BHIM app requires unlocking the phone (often using biometrics or PIN &#8211; &#8216;something you are&#8217; or &#8216;something you know&#8217;), logging into the app (requiring an application PIN &#8211; &#8216;something you know&#8217;), and then authorizing a transaction using the UPI PIN (&#8216;something you know&#8217;). This involves multiple layers of security, effectively utilizing at least three distinct pieces of information or actions for a transaction, not just two.<br \/>\n<\/section>\n<section id=\"pyq-additional-information\">\nBHIM was launched by the National Payments Corporation of India (NPCI) to facilitate fast, secure, and reliable cashless payments through mobile phones. UPI has become one of the most popular digital payment methods in India.<br \/>\n<\/section>\n","protected":false},"excerpt":{"rendered":"<p>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? [amp_mcq option1=&#8221;1 only&#8221; option2=&#8221;2 only&#8221; &#8230; <\/p>\n<p class=\"read-more-container\"><a title=\"With reference to digital payments, consider the following statements:\" class=\"read-more button\" href=\"https:\/\/exam.pscnotes.com\/mcq\/with-reference-to-digital-payments-consider-the-following-statements\/#more-91553\">Detailed Solution<span class=\"screen-reader-text\">With reference to digital payments, consider the following statements:<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1092],"tags":[1114,1112],"class_list":["post-91553","post","type-post","status-publish","format-standard","hentry","category-upsc-ias","tag-1114","tag-economic-and-social-development","no-featured-image-padding"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v22.2 (Yoast SEO v23.3) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>With reference to digital payments, consider the following statements:<\/title>\n<meta name=\"description\" content=\"The correct answer is A) 1 only. - Statement 1 is correct. The BHIM (Bharat Interface for Money) app is based on the Unified Payments Interface (UPI). UPI allows users to link their bank accounts and make instant money transfers using a Virtual Payment Address (VPA), mobile number, account number and IFSC, or Aadhaar. Therefore, a user can transfer money to anyone who has a bank account enabled for UPI. - Statement 2 is incorrect. Let&#039;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 - &#039;something you are&#039; or &#039;something you know&#039;), logging into the app (requiring an application PIN - &#039;something you know&#039;), and then authorizing a transaction using the UPI PIN (&#039;something you know&#039;). This involves multiple layers of security, effectively utilizing at least three distinct pieces of information or actions for a transaction, not just two.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/exam.pscnotes.com\/mcq\/with-reference-to-digital-payments-consider-the-following-statements\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"With reference to digital payments, consider the following statements:\" \/>\n<meta property=\"og:description\" content=\"The correct answer is A) 1 only. - Statement 1 is correct. The BHIM (Bharat Interface for Money) app is based on the Unified Payments Interface (UPI). UPI allows users to link their bank accounts and make instant money transfers using a Virtual Payment Address (VPA), mobile number, account number and IFSC, or Aadhaar. Therefore, a user can transfer money to anyone who has a bank account enabled for UPI. - Statement 2 is incorrect. Let&#039;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 - &#039;something you are&#039; or &#039;something you know&#039;), logging into the app (requiring an application PIN - &#039;something you know&#039;), and then authorizing a transaction using the UPI PIN (&#039;something you know&#039;). This involves multiple layers of security, effectively utilizing at least three distinct pieces of information or actions for a transaction, not just two.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/exam.pscnotes.com\/mcq\/with-reference-to-digital-payments-consider-the-following-statements\/\" \/>\n<meta property=\"og:site_name\" content=\"MCQ and Quiz for Exams\" \/>\n<meta property=\"article:published_time\" content=\"2025-06-01T10:59:53+00:00\" \/>\n<meta name=\"author\" content=\"rawan239\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"rawan239\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<!-- \/ Yoast SEO Premium plugin. -->","yoast_head_json":{"title":"With reference to digital payments, consider the following statements:","description":"The correct answer is A) 1 only. - Statement 1 is correct. The BHIM (Bharat Interface for Money) app is based on the Unified Payments Interface (UPI). UPI allows users to link their bank accounts and make instant money transfers using a Virtual Payment Address (VPA), mobile number, account number and IFSC, or Aadhaar. Therefore, a user can transfer money to anyone who has a bank account enabled for UPI. - 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.","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/exam.pscnotes.com\/mcq\/with-reference-to-digital-payments-consider-the-following-statements\/","og_locale":"en_US","og_type":"article","og_title":"With reference to digital payments, consider the following statements:","og_description":"The correct answer is A) 1 only. - Statement 1 is correct. The BHIM (Bharat Interface for Money) app is based on the Unified Payments Interface (UPI). UPI allows users to link their bank accounts and make instant money transfers using a Virtual Payment Address (VPA), mobile number, account number and IFSC, or Aadhaar. Therefore, a user can transfer money to anyone who has a bank account enabled for UPI. - 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.","og_url":"https:\/\/exam.pscnotes.com\/mcq\/with-reference-to-digital-payments-consider-the-following-statements\/","og_site_name":"MCQ and Quiz for Exams","article_published_time":"2025-06-01T10:59:53+00:00","author":"rawan239","twitter_card":"summary_large_image","twitter_misc":{"Written by":"rawan239","Est. reading time":"2 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"WebPage","@id":"https:\/\/exam.pscnotes.com\/mcq\/with-reference-to-digital-payments-consider-the-following-statements\/","url":"https:\/\/exam.pscnotes.com\/mcq\/with-reference-to-digital-payments-consider-the-following-statements\/","name":"With reference to digital payments, consider the following statements:","isPartOf":{"@id":"https:\/\/exam.pscnotes.com\/mcq\/#website"},"datePublished":"2025-06-01T10:59:53+00:00","dateModified":"2025-06-01T10:59:53+00:00","author":{"@id":"https:\/\/exam.pscnotes.com\/mcq\/#\/schema\/person\/5807dafeb27d2ec82344d6cbd6c3d209"},"description":"The correct answer is A) 1 only. - Statement 1 is correct. The BHIM (Bharat Interface for Money) app is based on the Unified Payments Interface (UPI). UPI allows users to link their bank accounts and make instant money transfers using a Virtual Payment Address (VPA), mobile number, account number and IFSC, or Aadhaar. Therefore, a user can transfer money to anyone who has a bank account enabled for UPI. - 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.","breadcrumb":{"@id":"https:\/\/exam.pscnotes.com\/mcq\/with-reference-to-digital-payments-consider-the-following-statements\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/exam.pscnotes.com\/mcq\/with-reference-to-digital-payments-consider-the-following-statements\/"]}]},{"@type":"BreadcrumbList","@id":"https:\/\/exam.pscnotes.com\/mcq\/with-reference-to-digital-payments-consider-the-following-statements\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/exam.pscnotes.com\/mcq\/"},{"@type":"ListItem","position":2,"name":"UPSC IAS","item":"https:\/\/exam.pscnotes.com\/mcq\/category\/upsc-ias\/"},{"@type":"ListItem","position":3,"name":"With reference to digital payments, consider the following statements:"}]},{"@type":"WebSite","@id":"https:\/\/exam.pscnotes.com\/mcq\/#website","url":"https:\/\/exam.pscnotes.com\/mcq\/","name":"MCQ and Quiz for Exams","description":"","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/exam.pscnotes.com\/mcq\/?s={search_term_string}"},"query-input":"required name=search_term_string"}],"inLanguage":"en-US"},{"@type":"Person","@id":"https:\/\/exam.pscnotes.com\/mcq\/#\/schema\/person\/5807dafeb27d2ec82344d6cbd6c3d209","name":"rawan239","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/exam.pscnotes.com\/mcq\/#\/schema\/person\/image\/","url":"https:\/\/secure.gravatar.com\/avatar\/761a7274f9cce048fa5b921221e7934820d74514df93ef195a9d22af0c1c9001?s=96&d=mm&r=g","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/761a7274f9cce048fa5b921221e7934820d74514df93ef195a9d22af0c1c9001?s=96&d=mm&r=g","caption":"rawan239"},"sameAs":["https:\/\/exam.pscnotes.com"],"url":"https:\/\/exam.pscnotes.com\/mcq\/author\/rawan239\/"}]}},"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/posts\/91553","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/comments?post=91553"}],"version-history":[{"count":0,"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/posts\/91553\/revisions"}],"wp:attachment":[{"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/media?parent=91553"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/categories?post=91553"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/tags?post=91553"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}