A
1 only
B
2 only
C
Both 1 and 2
D
Neither 1 nor 2
Correct answer: (c) Both 1 and 2
Explanation
Both statements are correct. MDR is paid by the merchant accepting payments rather than being deducted from the consumer, and person-to-person UPI transfers remain completely zero-rated under current guidelines.
Same topic · past papers
UPSC has asked this before
These previous-year questions sit on the same topic. Open one to practise the earlier ask.
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2018 · Q6 · General Studies · 2 marks
Which one of the following best describes the term "Merchant Discount Rate" sometimes seen in news? -
2025 · Q69 · General Studies · 2 marks
Consider the following countries : I. United Arab Emirates III. France III. Germany IV. Singapore V. Bangladesh How many countries amongst the above are there other than India where international merchant payments are accepted under UPI? -
2018 · Q56 · General Studies · 2 marks
Consider the following statements: 1. The Reserve Bank of India manages and services Government of India Securities but not any State Government Securities. 2. Treasury bills are issued by the Government of India and there are no treasury bills issued by the state Governments. 3. Treasury bills are issued at a discount from the par value. Which of the statements given above is/are correct? -
2025 · Q68 · General Studies · 2 marks
Consider the following statements in respect of RTGS and NEFT : I. In RTGS, the settlement time is instantaneous while in case of NEFT, is takes some time to settle payments. II. In RTGS, the customer is charged for inward transactions while that is not the case for NEFT. III. Operating hours for RTGS are restricted on certain days while this is not true for NEFT. Which of the statements given above is/are correct? -
2022 · Q69 · General Studies · 2 marks
With reference to Non-Fungible Tokens (NFTs), consider the following statements: 1. They enable the digital representation of physical assets. 2. They are unique cryptographic tokens that exist on a blockchain. 3. They can be traded or exchanged at equivalency and therefore can be used as a medium of commercial transactions. Which of the statements given above are correct?