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 factor

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Q: 73 (IAS/2018)
 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?

question_subject: 

Economics

question_exam: 

IAS

stats: 

0,115,28,115,3,23,2

keywords: 

{'chip pin debit card': [0, 0, 0, 1], 'digital payments': [0, 0, 0, 4], 'authentication': [0, 0, 0, 1], 'bhim app': [0, 0, 0, 1], 'bank account': [0, 0, 1, 4], 'factors': [0, 0, 1, 0], 'upi': [0, 0, 0, 2]}

Option 1 is correct because BHIM (Bharat Interface for Money) app indeed allows its users to transfer funds to anyone with a UPI (Unified Payments Interface) enabled bank account.

Option 2 is misleading. A chip pin debit card has two-factor authentication - the card itself, and the PIN that the user needs to enter. BHIM app also has two factors of authentication - the mobile number linked to the bank account, and the UPI PIN that the user needs to enter for executing the transfer. So, there is no basis for the assertion that a chip pin debit card has four factors of authentication. Hence, option 2 is incorrect.

Option 3 and 4 are therefore also incorrect, based on the reasons given above.

Therefore, only the first statement is correct.