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?
- 1 only
- 2 only
- Both 1 and 2
- Neither 1 nor 2
Explanation
Statement 1 is correct
- Bharat Interface for Money (BHIM) (an app built on Unified Payment Interface (UPI)) is a payment app that lets you make simple, easy and quick transactions. UPI, or Unified Payment Interface, is a payment system that allows money transfer between any two bank accounts. UPI allows a customer to pay directly from a bank account to different merchants, both online and offline, without the hassle of typing credit card details, IFSC code, or net banking/wallet passwords.
- Developed by the National Payments Corporation of India (NPCI), BHIM is an aggregator for all UPI-based services offered by banks.
Statement 2 is incorrect
- BHIM uses three-factor authentication and hence, is relatively more secure from a consumer point of view.
