Question
GSMediumPrelims 2018Economy

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?

Explanation

Statement 1 is correct: Bharat Interface for Money (BHIM) is a payment app that lets you make simple, easy, and quick transactions using Unified Payments Interface (UPI). You can make direct bank payments to anyone on UPI using their UPI ID or scanning their QR with the BHIM app. You can also request money through the app from a UPI ID.

Statement 2 is not correct: From a consumer point of view, three levels of authentication are required in this app.

  1. The device ID and mobile number,
  2. The bank account which you are linking to this app, and
  3. The UPI Pin which is needed to complete the transaction.

There are three factors of authentication versus a normal net banking app or a chip-in debit card which will only have two factors of authentication.

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