economics medium True/False

The 'Unified Payments Interface' (UPI) requires users to enter their sensitive bank account numbers and IFSC codes for every single peer-to-peer transaction to ensure absolute security.

  1. True
  2. False

Answer: False

UPI's revolutionary design completely abstracts the underlying banking details from the user. Instead of sharing vulnerable account numbers and IFSC codes, users simply transact using a unique Virtual Payment Address (VPA, like name@bank) or by scanning a standardized QR code. This layer of abstraction, combined with two-factor authentication (MPIN), drastically reduces the risk of fraud while making digital payments as simple as sending a text message.

Topic Indian Economy - Digital
Exam Relevance Banking, SSC, UPSC
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