UPSC Prelims Practice Questions — Nearly 55.49 Crore Users Onboarded on UPI as in June 2026

Q1. With reference to the official statistics on UPI released in mid-2026, consider the following figures. Which of the above is/are correctly identified?

  1. Users onboarded on UPI as of June 2026 — 55.49 crore
  2. Total transaction volume in FY 2025-26 — 24,161.69 crore
  3. Total transaction value in FY 2025-26 — ₹314.23 lakh crore
  4. Number of banks live on UPI in FY 2025-26 — 44
  • A. 1 and 2 only
  • B. 3 and 4 only
  • C. 1, 2 and 3 only
  • D. 1, 2, 3 and 4

Q2. The operation of the Unified Payments Interface (UPI) by the NPCI is authorised under which one of the following statutes?

  • A. Payment and Settlement Systems Act, 2007
  • B. Banking Regulation Act, 1949
  • C. Reserve Bank of India Act, 1934
  • D. Prevention of Money Laundering Act, 2002

Q3. With reference to the institutional architecture of India's payment systems, consider the following statements. Which of the statements given above is/are correct?

  1. Both UPI and RTGS are owned and operated by the NPCI.
  2. NPCI is a not-for-profit umbrella organisation promoted by banks for retail payments, whereas RTGS and NEFT are operated by the Reserve Bank of India.
  3. NPCI operates UPI under the regulatory oversight of the Reserve Bank of India.
  • A. 1 and 2 only
  • B. 2 and 3 only
  • C. 3 only
  • D. 1, 2 and 3

Q4. With reference to the institutional and legal framework governing UPI, consider the following statements. Which of the above is/are NOT correct?

  1. UPI is operated by the National Payments Corporation of India.
  2. UPI derives its statutory authorisation from the Payment and Settlement Systems Act, 2007.
  3. The Reserve Bank of India provides regulatory oversight over UPI.
  4. UPI is a large-value settlement system operated directly by the Reserve Bank of India.
  • A. 1 only
  • B. 4 only
  • C. 3 and 4 only
  • D. 2 only

Q5. Which one of the following best describes the Unified Payments Interface (UPI)?

  • A. A real-time system enabling inter-bank peer-to-peer and person-to-merchant transactions through mobile devices
  • B. A large-value gross settlement system for high-value inter-bank transfers settled individually and continuously
  • C. A card-based domestic network for issuing debit and credit cards
  • D. A deferred net settlement system operated by the RBI in periodic batches

Q6. As recognised by the IMF and marked at UPI's tenth anniversary in 2026, which one of the following is the world's largest real-time payment system by transaction volume?

  • A. UPI (India)
  • B. Pix (Brazil)
  • C. FedNow (United States)
  • D. Faster Payments Service (United Kingdom)

Q7. With reference to UPI's share in digital payments, consider the following statements. Which of the statements given above is/are correct?

  1. UPI accounts for about 85% of India's digital transactions.
  2. UPI powers nearly 50% of global real-time digital payments.
  3. The IMF has recognised UPI as the world's largest real-time payment system by transaction value.
  • A. 1 and 2 only
  • B. 1 and 3 only
  • C. 2 and 3 only
  • D. 1, 2 and 3

Q8. Approximately what share of global real-time digital payment transaction volume is accounted for by UPI, as cited in official releases?

  • A. About 49%
  • B. About 25%
  • C. About 85%
  • D. About 10%

Q9. In which financial year did UPI's annual transaction value first cross ₹300 lakh crore, reaching ₹314.23 lakh crore?

  • A. FY 2025-26
  • B. FY 2024-25
  • C. FY 2023-24
  • D. FY 2022-23

Q10. The 'Authentication Mechanisms for Digital Payment Transactions Directions, 2025', mandating two-factor authentication with a dynamic factor for UPI from 1 April 2026, were issued by which one of the following?

  • A. Reserve Bank of India
  • B. National Payments Corporation of India
  • C. Ministry of Finance
  • D. Ministry of Electronics and Information Technology

Q11. With reference to UPI's international linkages, consider the following country–feature pairs. Which of the above is/are correctly matched?

  1. Singapore — UPI linked with PayNow for cross-border fund transfers
  2. Bhutan — first country outside India to adopt UPI standards
  3. France — first European country to accept UPI
  4. Sri Lanka — UPI linked with the PromptPay network
  • A. 1 and 4 only
  • B. 1, 2 and 3 only
  • C. 2, 3 and 4 only
  • D. 1, 2, 3 and 4

Q12. Among UPI, IMPS, RuPay, RTGS and NEFT, how many are owned and operated by the National Payments Corporation of India (NPCI)?

  • A. Two
  • B. Three
  • C. Four
  • D. Five