Which of the following is a most likely consequence of implementing the 'Unified Payments Interface (UPI)' ?
A
Mobile wallets will not be necessary for online payments.
Correct Answer
B
Digital currency will totally replace the physical currency in about two decades.
C
FDI inflows will drastically increase.
D
Direct transfer of subsidies to poor people will become very effective.
Explanation
UPI enables direct bank-to-bank transfers through a single mobile interface, testing the concept of payment system interoperability which eliminates the need to pre-load money into intermediary mobile wallets for online transactions. While option (d) is tempting, the effectiveness of direct subsidy transfers is primarily driven by the JAM trinity (Jan Dhan-Aadhaar-Mobile) and the Aadhaar-enabled Payment System (AePS) rather than the UPI retail platform. The core concept being tested is the structural shift in the digital payment ecosystem from stored-value accounts (wallets) to real-time, account-to-account transfers.
Digital PaymentsUnified Payments Interface (UPI)Unified Payments InterfaceUPINational Payments Corporation of IndiaNPCIMobile WalletsVirtual Payment AddressVPA