UPSC Prelims 2018 · Question 28 of 99
UPSC Prelims 2018 question on BHIM App Digital Payments
- ExamUPSC CSE
- Year2018
- PaperGeneral Studies Paper I
- SubjectIndian Economy
- TopicBanking
- DifficultyMedium
- TypeStatement
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?
Show answer
Answer: A. 1 only
Verdict
Only statement 1 is correct, so the answer is (a) 1 only.
Statement by statement
Statement 1 is CORRECT. BHIM lets a user make direct bank payments to anyone on UPI using their UPI ID or by scanning their QR code, and money can also be requested through the app.
Statement 2 is INCORRECT, and it reverses the comparison. From the consumer's point of view BHIM involves three levels of authentication: the device ID and mobile number, the bank account linked to the app, and the UPI PIN needed to complete the transaction. A net banking app or a chip and pin debit card has two factors. So BHIM has three and the card has two, not four against two.
Source
Indian Express report on the BHIM app and UPI transaction safety, and the official BHIM UPI website.
How to crack it
Comparative statements are best attacked by counting the smaller side. You do not need BHIM's architecture to sense that a chip and pin card offers only the card and the PIN, which is two factors and not four. Once one side of the comparison is fixed, the statement fails regardless of the other side. Whenever a statement asserts that X has four factors and Y has two, verify the number you can actually reason about.