The Unified Payments Interface (UPI) enables instant transfer of money directly between any two bank accounts using a mobile platform. It simplifies digital payments by allowing direct debits and credits from bank accounts linked via a UPI ID or mobile number. This significantly reduces the dependency on pre-loading money into separate mobile wallets for many online transactions, making mobile wallets less necessary for all online payments compared to the pre-UPI era.
Which of the following is a most likely consequence of implementing the 'Unified Payments Interface (UPI)' ?
Asked in UPSC IAS 2017 · Topic: Money & Banking (Payment Systems in India: Digital Payments, UPI, and Central Bank Digital Currency (CBDC))
Show answer
Answer: A. Mobile wallets will not be necessary for online payments.
More Economic Development questions
- Which one of the following links all the ATMs in India ?
- Consider the following statements: The Reserve Bank of India's recent directives relating to 'Storage of Payment System Data', popularly known as data diktat, command the payment system providers that 1. they shall ensure that entire data relating to payment systems operated by them are stored in a system only in India 2. they shall ensure that the systems are owned and operated by public sector enterprises 3. they shall submit the consolidated system audit report to the Comptroller and Auditor General of India by the end of the calendar year Which of the statements given above is/are correct?
- With reference to Central Bank digital currencies, consider the following statements : 1. It is possible to make payments in a digital currency without using US dollar or SWIFT system. 2. A digital currency can be distributed with condition programmed into it such as a time-frame for spending it. Which of the statements given above is/are correct?
- Consider the following statements in respect of the digital rupee : 1. It is a sovereign currency issued by the Reserve Bank of India (RBI) in alignment with its monetary policy. 2. It appears as a liability on the RBI's balance sheet. 3. It is insured against inflation by its very design. 4. It is freely convertible against commercial bank money and cash. Which of the statements given above are correct ?
- Which one of the following is not a Pre Paid Payment instrument?
- Hawala transactions relate to payments
- What is RuPay ?
- An instant real-time inter-bank electronic funds transfer system, which offers an inter- bank electronic fund transfer service through mobile phones known as
