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 ?

Statement 1 is correct because the BHIM (Bharat Interface for Money) app is built on the Unified Payments Interface (UPI) infrastructure, allowing users to transfer money to any UPI-enabled bank account using a Virtual Payment Address (VPA), mobile number, or QR code. Statement 2 is incorrect because BHIM actually employs three factors of authentication (device binding/mobile number, app login PIN, and UPI PIN), whereas a chip-pin debit card typically uses only two factors (the physical card and the PIN). The core concept tested is the security architecture and functional capabilities of India's digital payment infrastructure.