MasteryExams
Economics • Banking & FinanceEasy

What is the primary operational objective of the 'Bharat Interface for Money (BHIM)' application?

A. To provide micro-insurance policies in rural areas
B. To facilitate safe, easy, and instant digital payments using the Unified Payments Interface (UPI)✓ Correct Answer
C. To regulate foreign exchange transactions for retail investors
D. To provide direct agricultural loans through mobile phones

💡 Solution & Explanation

The Bharat Interface for Money application, developed by the National Payments Corporation of India, enables users to execute safe, instant, and frictionless digital financial transactions utilizing the Unified Payments Interface platform. It does not handle micro-insurance or retail foreign exchange regulations directly. BHIM simplifies peer-to-peer money transfers using virtual payment addresses or quick response codes. Digital public infrastructure initiatives like this have transformed the retail payment ecosystem in India.

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