{"id":1774,"date":"2024-03-29T21:19:02","date_gmt":"2024-03-29T15:49:02","guid":{"rendered":"https:\/\/lotusarise.com\/qna\/?p=1774"},"modified":"2024-04-03T07:11:21","modified_gmt":"2024-04-03T01:41:21","slug":"q-which-of-the-following-is-a-most-likely-consequence-of-implementing-the-unified-payments-interface-upi","status":"publish","type":"post","link":"https:\/\/lotusarise.com\/qna\/upsc\/q-which-of-the-following-is-a-most-likely-consequence-of-implementing-the-unified-payments-interface-upi","title":{"rendered":"Q.\u00a0Which of the following is a most likely consequence of implementing the Unified Payments Interface (UPI)?"},"content":{"rendered":"\n<ul class=\"mcq wp-block-list\">\n<li>Mobile wallets will not be necessary for online payments.<\/li>\n\n\n\n<li>Digital currency will totally replace the physical currency in about two decades.<\/li>\n\n\n\n<li>FDI inflows will drastically increase.<\/li>\n\n\n\n<li>Direct transfer of subsidies to poor people will become very effective.<\/li>\n<\/ul>\n\n\n\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p class=\"wp-block-paragraph\"><strong>Answer:<\/strong>&nbsp;<strong>(a) Mobile wallets will not be necessary for online payments.<\/strong><\/p>\n<\/blockquote>\n\n\n\n<h5 class=\"wp-block-heading\" id=\"unified-payments-interface-upi\">Unified Payments Interface (UPI):<\/h5>\n\n\n\n<ul class=\"wp-block-list\">\n<li>The UPI is a&nbsp;<strong>digital and real-time payment system<\/strong>&nbsp;<strong>developed by the&nbsp;National Payments Corporation of India&nbsp;(NPCI)<\/strong>&nbsp;and&nbsp;<strong>regulated by the Reserve Bank of India (RBI)<\/strong>.<\/li>\n\n\n\n<li>It was&nbsp;<strong>launched on April 11, 2016.<\/strong><\/li>\n\n\n\n<li>It is designed to&nbsp;enable&nbsp;<strong>peer-to-peer inter-bank transfers<\/strong>&nbsp;through a&nbsp;single two-click factor authentication process.&nbsp;<\/li>\n\n\n\n<li>Features:\n<ul class=\"wp-block-list\">\n<li>Unlike traditional methods, UPI&nbsp;simplifies transfers&nbsp;using the&nbsp;<strong>recipient\u2019s UPI ID, be it a mobile number, QR code, or Virtual Payment Address,&nbsp;eliminating account numbers.<\/strong><\/li>\n\n\n\n<li>It\u00a0<strong>eliminates the need to enter bank details<\/strong><strong>or other sensitive information each time<\/strong>\u00a0a customer initiates a transaction.\n<ul class=\"wp-block-list\">\n<li><strong>Mobile wallets will not be necessary for online payments<\/strong>. UPI allows you to pay&nbsp;<strong>directly from your bank account<\/strong>&nbsp;to different merchants without the hassle of typing your card details, or net banking\/wallet password.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li>A&nbsp;consistent UPI transaction PIN&nbsp;across apps enhances cross-operability,&nbsp;<strong>enabling 24\/7 transactions.<\/strong><\/li>\n\n\n\n<li>UPI operates as a&nbsp;digital public infrastructure, allowing seamless interactions for all players, including merchants and customers, without transaction costs.<\/li>\n\n\n\n<li><strong>UPI&nbsp;uses technologies like the Immediate Payment Service (IMPS) and the&nbsp;Aadhaar-Enabled Payment System (AEPS)&nbsp;<\/strong>to ensure that payments between accounts&nbsp;go smoothly.&nbsp;<\/li>\n\n\n\n<li>It&nbsp;facilitates push (pay) and pull (receive) transactions and&nbsp;even works for over-the-counter or barcode payments, as well as for&nbsp;multiple recurring payments&nbsp;such as utility bills, school fees, and other subscriptions.<\/li>\n\n\n\n<li>It also&nbsp;works with&nbsp;<strong>\u201cPeer-to-Peer\u201d requests<\/strong>, which can be scheduled and paid for based on need and convenience.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li>The<strong>&nbsp;top UPI apps<\/strong>&nbsp;today include PhonePe, Paytm, Google Pay, Amazon Pay and&nbsp;<strong>BHIM<\/strong>, the latter being the Government offering.<\/li>\n<\/ul>\n\n\n\n<h6 class=\"wp-block-heading\" id=\"national-payments-corporation-of-india\"><strong>National Payments Corporation of India<\/strong><\/h6>\n\n\n\n<ul class=\"wp-block-list\">\n<li>NPCI, an umbrella organisation for operating retail payments and settlement systems in India, is&nbsp;<strong>an initiative of Reserve Bank of India (RBI) and Indian Banks\u2019 Association (IBA)<\/strong>&nbsp;under the provisions of the Payment and Settlement Systems Act, 2007.<\/li>\n\n\n\n<li>It is a \u201cNot for Profit\u201d Company under the provisions of&nbsp;<strong>Section 25 of Companies Act 1956<\/strong>&nbsp;(now Section 8 of Companies Act 2013), with an intention to provide infrastructure to the entire Banking system in India for physical as well as electronic payment and settlement systems.<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>Answer:&nbsp;(a) Mobile wallets will not be necessary for online payments. Unified Payments Interface (UPI): National Payments Corporation of India<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_kad_blocks_custom_css":"","_kad_blocks_head_custom_js":"","_kad_blocks_body_custom_js":"","_kad_blocks_footer_custom_js":"","_kad_post_transparent":"","_kad_post_title":"","_kad_post_layout":"","_kad_post_sidebar_id":"","_kad_post_content_style":"","_kad_post_vertical_padding":"","_kad_post_feature":"","_kad_post_feature_position":"","_kad_post_header":false,"_kad_post_footer":false,"_kad_post_classname":"","footnotes":""},"categories":[1,3],"tags":[38],"years":[56],"class_list":["post-1774","post","type-post","status-publish","format-standard","hentry","category-upsc","category-prelims","tag-indian-economy","years-56"],"acf":[],"taxonomy_info":{"category":[{"value":1,"label":"UPSC"},{"value":3,"label":"Prelims"}],"post_tag":[{"value":38,"label":"Indian Economy"}],"years":[{"value":56,"label":"2017"}]},"featured_image_src_large":false,"author_info":{"display_name":"LotusArise","author_link":"https:\/\/lotusarise.com\/qna\/author\/team-lotusarise"},"comment_info":0,"category_info":[{"term_id":1,"name":"UPSC","slug":"upsc","term_group":0,"term_taxonomy_id":1,"taxonomy":"category","description":"","parent":0,"count":1269,"filter":"raw","cat_ID":1,"category_count":1269,"category_description":"","cat_name":"UPSC","category_nicename":"upsc","category_parent":0},{"term_id":3,"name":"Prelims","slug":"prelims","term_group":0,"term_taxonomy_id":3,"taxonomy":"category","description":"","parent":1,"count":1251,"filter":"raw","cat_ID":3,"category_count":1251,"category_description":"","cat_name":"Prelims","category_nicename":"prelims","category_parent":1}],"tag_info":[{"term_id":38,"name":"Indian Economy","slug":"indian-economy","term_group":0,"term_taxonomy_id":38,"taxonomy":"post_tag","description":"","parent":0,"count":225,"filter":"raw"}],"_links":{"self":[{"href":"https:\/\/lotusarise.com\/qna\/wp-json\/wp\/v2\/posts\/1774","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/lotusarise.com\/qna\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/lotusarise.com\/qna\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/lotusarise.com\/qna\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/lotusarise.com\/qna\/wp-json\/wp\/v2\/comments?post=1774"}],"version-history":[{"count":0,"href":"https:\/\/lotusarise.com\/qna\/wp-json\/wp\/v2\/posts\/1774\/revisions"}],"wp:attachment":[{"href":"https:\/\/lotusarise.com\/qna\/wp-json\/wp\/v2\/media?parent=1774"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/lotusarise.com\/qna\/wp-json\/wp\/v2\/categories?post=1774"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/lotusarise.com\/qna\/wp-json\/wp\/v2\/tags?post=1774"},{"taxonomy":"years","embeddable":true,"href":"https:\/\/lotusarise.com\/qna\/wp-json\/wp\/v2\/years?post=1774"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}