Option A is a correct statement: UPI is a real-time payment interface that facilitates the transfer of fiat money already held in bank accounts. The Digital Rupee (e₹) is actual sovereign digital currency (legal tender) issued by the Reserve Bank of India (RBI), functioning as the digital equivalent of physical paper cash.

Option B is a correct statement: In UPI, settlement for end users happens instantly as the money gets immediately debited or credited (with backend inter-bank settlement). In the case of the Digital Rupee, transactions occur directly between digital wallets. The transfer of the e₹ token itself provides instantaneous finality of settlement (exactly like handing over physical cash), bypassing bank intermediation and eliminating the need for a separate settlement process.

Option C is a correct statement: Because UPI transactions are routed through bank accounts, every transaction is recorded in the user's bank statement. Digital Rupee transactions are wallet-to-wallet; therefore, individual peer-to-peer transfers do not reflect in bank statements (only the initial loading or unloading of the e₹ wallet from a bank account is recorded).

Option D is an incorrect statement: Money transferred via UPI is commercial bank money; hence, the liability lies with the respective commercial banks. The Digital Rupee, however, is a Central Bank Digital Currency (CBDC) and represents a direct liability of the RBI, guaranteed by the sovereign, not the commercial banks.

Therefore, Option D is the correct answer.