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 account. 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 ?
- (a) 1 only ✓ UPSC's answer
- (b) 2 only
- (c) Both 1 and 2
- (d) Neither 1 nor 2
Why the answer is (a)
• Statement 1 is correct: BHIM (Bharat Interface for Money), built by NPCI on UPI, lets users send money to anyone with a UPI-linked bank account using a UPI ID, mobile number or account+IFSC.
• Statement 2 is wrong: a chip-and-PIN card offers two factors (the card you have and the PIN you know); BHIM/UPI likewise uses two factors — the registered device binding and the UPI PIN — with a device-level lock as an extra layer, so neither the 'four' nor the contrast is correct.
• Hence 1 only, option (a).
Why the other options are wrong
- (b) 2 only
- Statement 2 is wrong: chip-PIN cards do not have four factors.
- (c) Both 1 and 2
- Statement 2 is wrong.
- (d) Neither 1 nor 2
- Statement 1 is correct: BHIM transfers to any UPI account.
Asked in the GS Paper I of the UPSC Civil Services Preliminary Examination 2018, held on 3 June 2018. Question and answer key: Union Public Service Commission. Explanation: UPSC Answer Check.