Economics • Banking & FinanceEasy
What financial service is primarily facilitated through the Unified Payments Interface in India?
A. Long-term agricultural crop insurance underwriting
B. Instant real-time fund transfer between bank accounts using a virtual payment address✓ Correct Answer
C. Direct trading of government bonds on international stock exchanges
D. Issuance of secured letters of credit for foreign trade transactions
💡 Solution & Explanation
The Unified Payments Interface, developed by the National Payments Corporation of India, enables instant interbank fund transfers through mobile devices using a single identifier without disclosing bank account details. It operates 24/7 and integrates multiple bank accounts into a single mobile application. This infrastructure has significantly driven digital financial inclusion nationwide.
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