Which one of the following statements about Unified Payments Interface (UPI) and Central Bank Digital Currency (Digital Rupee) is not correct ?
A
UPI is a real-time payment system but Digital Rupee is akin to sovereign paper currency.
B
In case of UPI, settlement for end users happens instantly as the money gets immediately debited or credited but in case of Digital Rupee, there is no settlement as the wallet balance gets transferred to another wallet.
C
UPI transactions are recorded by banks and reflected in bank statements but in case of Digital Rupee, no data is captured in bank statements as transactions are from one wallet to another.
D
In both the cases (UPI and Digital Rupee), the liability lies with the users and their respective banks.
Correct answer
Explanation
The incorrect statement is (d). UPI moves money between bank accounts, so the balances are liabilities of commercial banks. The Digital Rupee, like cash, is a direct liability of the RBI, not of the user's bank. The other statements reflect the RBI's description: e₹ is a digital form of sovereign currency, transfers between wallets are final without separate settlement, and wallet-to-wallet transactions do not appear in bank statements.
Digital EconomyUPI and the Digital RupeeUPICBDCDigital RupeeCentral bank liabilitySettlement finality