Which one of the following statements about Unified Payments Interface (UPI) and Central Bank Digital Currency (Digital Rupee) is not correct ?
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Answer: D. Option D is not correct: the Digital Rupee is a direct liability of the RBI, like cash, while UPI moves bank deposits, which are a liability of banks. The other statements correctly describe the difference between a payment system and a digital currency.
Watch for: Students treat both as 'digital payments' and miss that the e-rupee is RBI's liability.
Why the other options are wrong
- A. Wrong because it is a correct statement; UPI is a payment system and e-rupee is sovereign currency.
- B. Wrong because it is a correct statement; e-rupee transfers move tokens between wallets.
- C. Wrong because it is a correct statement; e-rupee wallet transfers do not appear in bank statements.
Source to check: RBI Concept Note on Central Bank Digital Currency (October 2022), rbi.org.in
Answer from the provisional UPSC key; it may change when the final key is out. Written and fact-checked by AI against the official key. Spotted a mistake? Report it.