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?
[UPSC Civil Services Exam – 2018 Prelims]
(a) 1 only
(b) 2 only
(c) Both 1 and 2
(d) Neither 1 nor 2
- BHIM, which stands for Bharat Interface for Money, is an initiative that enables easy and fast payment transactions through the Unified Payments Interface (UPI). Thus, statement 1 is correct.
- BHIM is an Indian mobile payment app that has been developed by the National Payments Corporation of India (NPCI).
- While a chip pin debit card does not have four-factor authorization, the BHIM app utilizes a three-factor authentication system. Therefore, statement 2 is incorrect.