Q. Consider the following statements:
1.e Rupi is a currency in digital form enabling digital transactions whereas UPI is a platform through which transactions happen digitally.
2.The bank acts as an intermediary in every UPI transaction whereas it does not act as intermediary in the transaction of e Rupi.
3.Cryptocurrencies can be stored in bank accounts.
Which of the statements given above is/are correct?

[A] 1 and 2 only

[B] 3 only

[C] 2 and 3 only

[D] 1 only

Answer: A
Notes:

Explanation –

Statement 1 and 2 are correct. e Rupi is a currency in digital form enabling digital transactions whereas UPI is a platform through which transactions happen digitally. The bank acts as an intermediary in every UPI transaction whereas it does not act as intermediary in the transaction of e Rupi. In e Rupi, the money is transferred from one’s wallet to other’s wallet.

Statement 3 is incorrect. CBDC is a legal tender and can be kept in bank accounts while cryptocurrencies need to be stored in digital wallets.

Source: ForumIAS