Q. With reference to the Unified Payments Interface (UPI), consider the following statements:
1.It enables seamless real-time peer-to-peer and person-to-merchant payments.
2.National Payments Corporation of India (NPCI) has developed the UPI system in India.
3.One-Time Password (OTP) sent via SMS is the primary authentication method for UPI transactions.
4.The Virtual Payment Address (VPA) in UPI replaces the requirement of a UPI PIN.
How many of the statements given above are correct?
Answer: B
Notes:
Explanations –
Statements 1 and 2 are correct. UPI allows instant real-time payments for both peer-to-peer (P2P) and person-to-merchant (P2M) transactions, making it a widely used payment system in India. The UPI system was developed by the NPCI under the guidance of the Reserve Bank of India (RBI) and launched in 2016.
Statements 3 and 4 are incorrect. While OTP is used during initial registration or linking of a bank account, UPI transactions are primarily authenticated using a UPI PIN, which is set by users during registration. The VPA is a unique identifier used to send or receive money without sharing bank details, but it does not replace the UPI PIN, which is required for transaction authentication.
Source: The Hindu
