UPSC Prelims 2017 – Question 43

Q43. Which of the following is a most likely consequence of implementing the ‘United Payments Interface [UPI]?

a) Mobile wallets will not be necessary for online payments.
b) Digital currency will totally replace the physical currency in about two decades
c) FDI inflows will drastically increase.
d) Direct transfer of subsidies to poor people will become very effective.

The correct answer is option 1.  

• Unified Payments Interface (UPI) 
• It allows you to pay directly from your bank account to various merchants without having to type in your credit card information or net banking/wallet password. Hence, option 1 is correct. 
• UPI is a payment system that allows money to be transferred between two bank accounts via smartphone. 
• The Unified Payments Interface (UPI) is a real-time instant payment system developed by NPCI to facilitate inter-bank transactions via mobile phone. 

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