Q. Which one of the following statements about Unified Payments Interface (UPI) and Central Bank Digital Currency (Digital Rupee) is not correct?
(a) UPI is a real-time payment system but Digital Rupee is akin to sovereign paper currency.
(b) In case of UPI, settlement for end users happens instantly as the money gets immediately debited or credited but in case of Digital Rupee, there is no settlement as the wallet balance gets transferred to another wallet.
(c) UPI transactions are recorded by banks and reflected in bank statements but in case of Digital Rupee, no data is captured in bank statements as transactions are from one wallet to another.
(d) In both the cases (UPI and Digital Rupee), the liability lies with the users and their respective banks.

Answer : D

Explanation:

(d) is not correct: Unlike UPI, which moves commercial bank money, the e-Rupee is a direct liability of the central bank (RBI), carrying zero credit or settlement risk. So the liability for Digital Rupee lies with the RBI, not with users and their banks. Option (d) wrongly equates the liability structure of both.
(a) is correct: UPI is a real-time payment system; Digital Rupee is sovereign currency like paper money.
(b) is correct: In UPI, the amount is debited and credited instantly as a ledger entry, but actual fund transfer happens during the bank settlement cycle. In CBDC, there is an exchange of tokens in real time — as good as handing over a physical note — eliminating the need for a settlement process.
(c) is correct: RBI has designed small-value Digital Rupee transactions to offer anonymity similar to cash — it won't appear in your bank statement, unlike UPI transactions.

Source:

https://www.pwc.in/research-and-insights-hub/future-of-digital-currency-in-india.html