Which of the following is a most likely consequence of implementing the ‘Unified Payments Interface (UPI)’ ?
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Answer: A. UPI, launched by NPCI in 2016, lets users send money straight between bank accounts using a mobile phone and a virtual address. No money needs to be loaded into a wallet first. So it can make separate mobile wallets unnecessary for online payments. Option B is an extreme claim, option C has no direct link, and subsidy transfers already work through DBT and Aadhaar-linked bank accounts. So the answer is A.
Watch for: Watch for option D. DBT sounds digital and pro-poor, but it is a different system.
Why the other options are wrong
- B. Wrong because 'totally replace' cash in two decades is an extreme claim UPI cannot ensure.
- C. Wrong because UPI is a domestic payment system with no direct link to FDI.
- D. Wrong because DBT works through the APBS (Aadhaar payment bridge) system, not UPI.
Source to check: NPCI, 'Unified Payments Interface' product overview (npci.org.in); RBI Payment Systems Vision documents (rbi.org.in)
Answer from the official UPSC key. Written and fact-checked by AI against the official key. Spotted a mistake? Report it.