Prelims 2018 · Economy · Question 28
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?
Answer
1 only
1. BHIM app allows transfer to anyone with a UPI-enabled bank account — Correct. BHIM is built on UPI and enables person-to-person transfer to bank accounts linked with UPI.
2. Chip-pin debit card has four factors of authentication, while BHIM app has only two — Incorrect. Under RBI usage, a chip-and-PIN card transaction is generally treated as two-factor authentication: (i) possession of the card and (ii) knowledge of the PIN. The statement claiming four factors for chip-pin debit card is factually wrong.
Therefore, only Statement 1 is correct.