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UPSC 2017: 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.
(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.
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Not attemptedCorrect Answer: (a) Mobile wallets will not be necessary for online payments.
UPI lets a customer pay merchants directly from a bank account using a virtual payment address, eliminating the need to preload money into a separate mobile wallet; therefore mobile wallets become redundant for most online payments. Replacing all physical currency, boosting FDI or dramatically improving subsidy transfers are not direct or ‘most likely’ outcomes. Thus option (a) is correct. ([insightsonindia.com](https://www.insightsonindia.com/2017/06/19/answer-key-upsc-civil-services-prelims-exam-2017-general-studies-paper-1/))
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Frequently Asked Questions
What is the correct answer to this UPSC 2017 Indian Economy question?▼
The correct answer is option (a): Mobile wallets will not be necessary for online payments.. Watch the detailed video explanation in our Sherlocking Prelims course on UnlockIAS.
Which year was this Digital Payments & Financial Inclusion question asked in UPSC Prelims?▼
This question was asked in UPSC CSE Prelims 2017, GS Paper 1, as Question 43. It falls under Indian Economy > Digital Payments & Financial Inclusion.
What is the difficulty level of this UPSC question?▼
This question is rated "moderate". It requires sound conceptual understanding of the topic.
How many UPSC Prelims questions have been asked from Digital Payments & Financial Inclusion?▼
UPSC has asked 20 questions from Digital Payments & Financial Inclusion (under Indian Economy) across multiple years. Visit the topic page to see the full list and year-wise trends.