Which one of the following statements about UPI and Central Bank Digital Currency (Digital Rupee) is

Question

Which one of the following statements about UPI and Central Bank Digital Currency (Digital Rupee) is not correct?

Accepted Answer

This statement is incorrect. UPI transfers commercial bank money, so liability lies with commercial banks. The Digital Rupee (CBDC) is a direct liability of the RBI (the central bank), guaranteed by the sovereign — not commercial banks. The other statements are all correct.