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GS Paper IUPSC Prelims 2018
Banking & Financial System
Question No. 164Interactive Test Mode
00:00
+2-0.66

Q164. 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?

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?
Select the correct option below (or cross out options to eliminate)
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Official Answer Key & Detailed Solution

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Official UPSC Answer KeyUPSC Prelims 2018 • Indian Economy

Correct Answer: Option (A) — 1 only

Concept & Option Breakdown

Standard Reference Verified

Statement 1 is correct: BHIM (Bharat Interface for Money) facilitates fund transfers to any UPI-enabled bank account using a UPI ID, mobile number, or QR code. Statement 2 is incorrect: Both Chip-PIN debit cards and the BHIM app utilize two-factor authentication (2FA). Chip-PIN cards use a possession factor (physical card) and a knowledge factor (ATM PIN). BHIM uses a possession factor (registered mobile device) and a knowledge factor (UPI PIN).

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Question Specifications & Syllabus Mapping

Examination & YearUPSC Civil Services Preliminary Examination 2018 (Q164)
Paper & Marking SchemeGS Paper I • 2 Marks (-0.66 Negative for incorrect response)
Syllabus Subject & TopicIndian Economy → Banking & Financial System
Official Answer KeyOption (A) — 1 only

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Frequently Asked Questions — UPSC Prelims 2018 Q164

What is the official answer for UPSC Prelims 2018 GS Paper I Question 164 (Indian Economy)?

The official UPSC answer key for this 2018 Indian Economy (Banking & Financial System) question is Option (A): "1 only". Correct attempts carry 2 Marks with -0.66 Negative penalty for wrong answers.

Which UPSC Prelims syllabus topic does this 2018 question belong to?

This question belongs to GS Paper I under the subject "Indian Economy" and micro-topic "Banking & Financial System". You can explore all repeated questions from Banking & Financial System in Acme AI's 3D Prelims PYQ Realm or practice 50 full-length and sectional tests in the APT Prelims Test Series.

How can I solve this Banking & Financial System UPSC Prelims question using option elimination?

To solve Banking & Financial System questions in UPSC Prelims, identify extreme modifiers, verify core NCERT conceptual definitions, and eliminate mutually contradictory statement pairs before locking your final option.

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