UPSC Prelims 2018 Q28: Science & Technology – Computer & Information Technology
- (a) 1 only
- (b) 2 only
- (c) Both 1 and 2
- (d) Neither 1 nor 2
Answer: (a) 1 only
Explanation
BHIM App and Authentication Factors
| Statement | Claim | Verdict | Detail |
|---|---|---|---|
| 1 | BHIM allows transferring money to anyone with a UPI-enabled bank account | TRUE | BHIM is a UPI-based mobile app by NPCI. It allows sending money to any UPI ID, VPA, mobile number linked to UPI, IFSC+account number or QR code - so any UPI-enabled account can receive funds. |
| 2 | Chip-PIN debit card has 4 authentication factors; BHIM has only 2 factors | FALSE | A chip-PIN debit card typically has 2 factors of authentication (card = something you have + PIN = something you know), not 4. BHIM UPI typically has 2 factors as well (device binding + UPI PIN). The '4 vs 2' comparison is factually wrong. |
Answer: (a) 1 only.
Why each option is right or wrong
- (a) CORRECT. Only Statement 1 is right - BHIM's core function is precisely UPI-based peer-to-peer/peer-to-merchant transfers.
- (b) Incorrect. Statement 2 misstates the number of authentication factors for both instruments.
- (c) Incorrect. Statement 2 is factually wrong about factor counts.
- (d) Incorrect. Statement 1 correctly describes BHIM's UPI-transfer capability.
Key point
BHIM = NPCI's UPI reference app. Sends money to any UPI-enabled account via VPA, mobile, QR or account+IFSC. Authentication: UPI = 2-factor (device + UPI PIN); chip-PIN card = 2-factor (card + PIN). No instrument has 4 factors by default.
Remember
BHIM (Bharat Interface for Money), NPCI's flagship UPI app launched in 2016, allows users to transfer money to anyone with a UPI-enabled bank account. Both chip-PIN debit cards and BHIM UPI use two-factor authentication (something you have + something you know), not four factors. The Statement 2 claim about a '4 vs 2' factor difference is factually incorrect.
Common mistakes
- Assuming BHIM only works between BHIM users - it uses UPI rails so it interoperates with any UPI-enabled account/app.
- Overestimating authentication factors - most consumer payment instruments have 2 factors, not 4.
- Confusing BHIM (NPCI's app) with private-sector UPI apps (PhonePe, Google Pay, Paytm) - all use the same UPI rails.
Exam tip
2FA basics: Two factors = (i) something you have (card, device, token) + (ii) something you know (PIN, password) or something you are (biometric). Chip-PIN and UPI both are 2FA.
Sources
- NPCI - BHIM App User Guide and UPI Procedural Guidelines
- RBI Master Direction on Prepaid Payment Instruments