Which one of the following statements about Unified Payments Interface (UPI) and Central…

Approach: Distinguish between a 'payment rail' (UPI) and a 'sovereign digital asset' (e-Rupee) by focusing on the underlying liability and settlement mechanism.

- **Correct Answer:** (d) In both the cases (UPI and Digital Rupee), the liability lies with the users and their respective banks.
- **Why Statement D is incorrect:**
- In **UPI**, the liability lies with the commercial banks (as it is a bank-to-bank transfer mechanism).
- In **Digital Rupee (e-Rupee)**, the liability lies directly with the **Reserve Bank of India (RBI)**, as it is a digital form of sovereign currency, not a bank deposit.
- **Analysis of other statements:**
- **A:** Correct. UPI is a payment interface for existing bank deposits, whereas Digital Rupee is a digital token representing sovereign currency.
- **B:** Correct. UPI involves inter-bank settlement processes (even if near-instant), while Digital Rupee transactions are peer-to-peer (wallet-to-wallet) transfers of a digital asset, eliminating the need for traditional inter-bank settlement.
- **C:** Correct. UPI transactions are routed through bank accounts and appear in statements. Digital Rupee transactions occur within a dedicated wallet environment, independent of bank account ledgers.