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RAS question

BHIM app is associated with which payment system?

Correct answer: (B) UPI.

BHIM, or Bharat Interface for Money, is associated with the Unified Payments Interface (UPI) payment system.

  1. (A)

    NEFT

  2. (B)

    UPI

  3. (C)

    SWIFT

  4. (D)

    RTGS

Explanation

BHIM is a UPI-based payments app. The official BHIM page describes Bharat Interface for Money as a payment app that enables simple, quick and easy transactions using the Unified Payments Interface. It also says users can make direct bank payments to anyone on UPI through a UPI ID or QR code, and can request money from a UPI ID through the app. This matches the exam explanation: BHIM was launched on 30 December 2016 and was developed by NPCI to enable simple, easy and quick digital payments. Therefore, the payment system linked to BHIM is UPI, not a separate bank-transfer rail such as NEFT or RTGS.

Why the other options are wrong

  • (A) NEFT is a bank-to-bank transfer system, while BHIM is described as a payment app for transactions using UPI.
  • (C) SWIFT is used for international money transfers, whereas BHIM enables UPI-based payments and requests through UPI IDs or QR codes.
  • (D) RTGS is meant for high-value real-time transfers through banks, while BHIM is tied to UPI for simple, quick app-based digital payments.

Concept

This tests digital payments under Indian Economy, especially the distinction between UPI and older transfer systems. It recurs in RAS because financial inclusion and digital payment infrastructure are standard economy-governance themes.

Source

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