Question

What is the primary function of the Unified Payments Interface (UPI)?

• A. To provide loans and credit facilities
• B. To allow users to link multiple bank accounts into a single application for payments
• C. To offer stock market trading services
• D. To manage insurance policies

Answer 1

Answer:

B. To allow users to link multiple bank accounts into a single application for payments

The primary function of the Unified Payments Interface (UPI) is to provide a real-time payment system that facilitates instant fund transfers between any two bank accounts using a single mobile application.

It simplifies payments by using a Virtual Payment Address (VPA) or mobile number instead of complex bank account details, and it allows users to manage multiple bank accounts within that one app.