Q. With reference to Virtual Private Networks (VPNs), consider the following statements.
1. They provide online privacy and anonymity by creating a private network from a public internet connection.
2. VPNs are essential to the proper functioning of many modern businesses.
Which of the statements given above is/are correct?

[A] 1 only

[B] 2 only

[C] Both 1 and 2

[D] Neither 1 nor 2

Answer: C
Notes:

Recently the Parliamentary Standing Committee on Home Affairs recommended that the Ministry of Home Affairs should collaborate with the Ministry of Electronics and Information Technology to develop a coordination mechanism to block VPNs. 

About VPNs: 

A virtual private network (VPN) provides online privacy and anonymity by creating a private network from a public internet connection. VPNs mask a person’s internet protocol (IP) address, so the online actions are virtually untraceable. (Statement 1 is correct) 

VPNs are essential to the proper functioning of many modern businesses, particularly in the high-value-added services sectors. The VPNs enable branch offices to be properly plugged into corporate networks and allow for employees to conduct transactions and approvals with proper data security. (Statement 2 is correct) 

Read more: Protect Digital India: About the challenges associated with banning VPNs