Digital payment systems authentication
Question
With reference to digital payments, consider the following statements:
Which of the statements given above is/are correct?
- 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.
Options
1 only
2 only
Both 1 and 2
Neither 1 nor 2
Explanation
Statement 1 is correct: BHIM (Bharat Interface for Money) app is built on the UPI (Unified Payments Interface) platform and allows users to transfer money to anyone who has a UPI-enabled bank account, identified by their UPI ID or phone number. Statement 2 is incorrect: The authentication factors differ. A chip-pin debit card typically requires the physical card and PIN (2 factors). BHIM app uses biometric authentication (fingerprint/face) combined with device PIN and Aadhaar details, providing multiple factors of security. The comparison as stated is inaccurate. Only statement 1 is correct. > BHIM Feature: UPI-based money transfer; multimodal security, not simply 'two factors' as stated.
Question details
Year
2018
Paper
GS Paper 1
Question
Q28
Subject
Science & Technology
Sub-topic
Digital Payment Authentication
Type
Statement-based
Difficulty
Medium
Nature
Current-affairs-linked
Source hint
Digital Payment Systems 2017-2018
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