A
To regulate foreign institutional investments in domestic stock exchanges.
B
To facilitate instant real-time inter-bank peer-to-peer and person-to-merchant transactions.
C
To provide micro-credit to rural self-help groups without collateral.
D
To manage physical currency distribution across regional currency chests.
Correct answer: (b) To facilitate instant real-time inter-bank peer-to-peer and person-to-merchant transactions.
Explanation
Option B is correct because UPI is an instant real-time payment system developed by NPCI to facilitate inter-bank peer-to-peer and person-to-merchant transactions. Options A, C, and D describe completely different financial functions.
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? -
2021 · Q15 · GS II · 15 marks
Do Department -related Parliamentary Standing Committees keep the administration on its toes and inspire reverence for parliamentary control? Evaluate the working of such committees with suitable examples. -
2018 · Q28 · General Studies · 2 marks
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? -
2026 · Q90 · General Studies · 2 marks
Which one of the following statements about Unified Payments Interface (UPI) and Central Bank Digital Currency (Digital Rupee) is NOT correct? -
2017 · Q43 · General Studies · 2 marks
Which of the following is a most likely consequence of implementing the 'Unified Payments Interface (UPI)'?