UPSC Prelims Practice Questions — Coordinated Efforts of Government, RBI and NPCI Accelerate Growth in Digital Payments

Question 1

The National Payments Corporation of India (NPCI) was incorporated as an umbrella organisation for retail payments under the provisions of a specific Act. How many years elapsed between the enactment of that Act and the incorporation of NPCI?

Accepted Answer

1 year

Answer

3 years

Answer

5 years

Answer

8 years

Question 2

Along with the Indian Banks' Association (IBA), which one of the following was the principal promoter of the National Payments Corporation of India (NPCI)?

Accepted Answer

Reserve Bank of India

Answer

Securities and Exchange Board of India

Answer

Insurance Regulatory and Development Authority of India

Answer

Ministry of Finance

Question 3

UPI was recognised as accounting for nearly 49% of global real-time payment transactions and as the world's largest real-time payment system by which one of the following institutions?

Accepted Answer

International Monetary Fund

Answer

World Bank

Answer

Bank for International Settlements

Answer

World Trade Organization

Question 4

Which one of the following best describes the Unified Payments Interface (UPI)?

Accepted Answer

A real-time retail payment system enabling inter-bank person-to-person and person-to-merchant fund transfers through mobile devices

Answer

A domestic card payment network issuing debit and credit cards

Answer

A large-value gross settlement system operated directly by the RBI for inter-bank settlements

Answer

A central bank digital currency issued by the Reserve Bank of India

Question 5

Considering the four NPCI products — IMPS, RuPay, UPI and BHIM — how many of them were launched in or after the year 2016?

Accepted Answer

Two

Answer

One

Answer

Three

Answer

Four

Question 6

With reference to the chronology of NPCI's retail payment products, consider the following statements:
1. IMPS was launched before RuPay.
2. RuPay was launched in the same year as UPI.
3. BHIM was launched after UPI but within the same calendar year as UPI.
Which of the statements given above is/are correct?

Accepted Answer

1 and 3 only

Answer

1 only

Answer

2 and 3 only

Answer

1, 2 and 3

Question 7

As per the 2025-26 official communications on UPI's global footprint, UPI is reported to be live in over how many countries?

Accepted Answer

Eight

Answer

Five

Answer

Eleven

Answer

Fourteen

Question 8

Consider the following countries which are claimed to be locations where UPI is live:
1. France
2. Qatar
3. Germany
4. Mauritius
Which of the above is/are NOT correctly identified as a country where UPI is live?

Accepted Answer

3 only

Answer

1 and 3

Answer

2 and 4

Answer

1, 2 and 4

Question 9

With reference to the Payments Infrastructure Development Fund (PIDF), consider the following statements:
1. It was operationalised by the Reserve Bank of India.
2. It aims to deploy payment acceptance infrastructure in tier-3 to tier-6 centres.
3. The fund is managed and administered by NPCI.
4. North-eastern states are among its focus areas.
Which of the statements given above are correctly identified?

Accepted Answer

1, 2 and 4

Answer

1 and 3

Answer

2 and 4

Answer

1, 2, 3 and 4

Question 10

With reference to the Incentive Scheme for Promotion of Low-Value BHIM-UPI (P2M) Transactions for FY 2024-25, consider the following statements:
1. Only UPI (P2M) transactions up to ₹2,000 are covered.
2. The scheme is targeted at small merchants.
3. The total outlay of the scheme is ₹1,500 crore.
4. The scheme also incentivises RuPay debit card transactions.
Which of the statements given above are correctly identified?

Accepted Answer

1, 2 and 3

Answer

2 and 4

Answer

1 and 4

Answer

1, 2, 3 and 4

Question 11

In the context of India's digital payments data, the term 'P2M' refers to which one of the following?

Accepted Answer

Person-to-Merchant transactions

Answer

Person-to-Person transactions

Answer

Platform-to-Merchant transactions

Answer

Person-to-Mobile transactions

Question 12

Which department under the Ministry of Finance acts as the nodal department coordinating with the RBI and NPCI for the promotion and expansion of digital payments in India?

Accepted Answer

Department of Financial Services

Answer

Department of Economic Affairs

Answer

Department of Revenue

Answer

Department of Expenditure

UPSC Prelims Practice Questions — Coordinated Efforts of Government, RBI and NPCI Accelerate Growth in Digital Payments

Q1. The National Payments Corporation of India (NPCI) was incorporated as an umbrella organisation for retail payments under the provisions of a specific Act. How many years elapsed between the enactment of that Act and the incorporation of NPCI?

Q2. Along with the Indian Banks' Association (IBA), which one of the following was the principal promoter of the National Payments Corporation of India (NPCI)?

Q3. UPI was recognised as accounting for nearly 49% of global real-time payment transactions and as the world's largest real-time payment system by which one of the following institutions?

Q4. Which one of the following best describes the Unified Payments Interface (UPI)?

Q5. Considering the four NPCI products — IMPS, RuPay, UPI and BHIM — how many of them were launched in or after the year 2016?

Q7. As per the 2025-26 official communications on UPI's global footprint, UPI is reported to be live in over how many countries?

Q8. Consider the following countries which are claimed to be locations where UPI is live: 1. France 2. Qatar 3. Germany 4. Mauritius Which of the above is/are NOT correctly identified as a country where UPI is live?

Q11. In the context of India's digital payments data, the term 'P2M' refers to which one of the following?

Q12. Which department under the Ministry of Finance acts as the nodal department coordinating with the RBI and NPCI for the promotion and expansion of digital payments in India?