RRaahUPSC
2026 · EconomyPrevious Year Question
Q90.
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.
Answer

D

Explanation

UPI is a real-time bank-account payment system, while the Digital Rupee is RBI-issued CBDC. UPI represents commercial-bank deposit money; the e₹ represents central-bank money, so its liability is with the RBI rather than the user's bank. Therefore statement D is the incorrect statement.
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