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?

1. A

   1 only

   (a) 1 only. (a) Official key: BHIM uses UPI, so money can move to any UPI-enabled bank account. Statement 2 is false: a chip-and-PIN card is typically two-factor (card plus PIN), while BHIM/UPI uses device binding plus MPIN (and often mobile/SIM factors)—it is not the case that chip-PIN has four factors and BHIM only two. Only statement 1 is correct.

2. B

   2 only

   (b) 2 only. The four-versus-two factor comparison is incorrect. This letter is not the key.

3. C

   Both 1 and 2

   (c) Both 1 and 2. Statement 2 fails, so both-correct is not the key.

4. D

   Neither 1 nor 2

   (d) Neither 1 nor 2. BHIM-to-UPI transfer is real, so ‘neither’ is not the key.

Summary. Official key is (a) 1 only. BHIM is an NPCI UPI app and can pay any UPI ID or account. The stem’s authentication-count comparison is wrong. Honour the stored letter (a).