Which of the following is a most likely consequence of implementing the ‘Unified Payments Interface (UPI)?

The correct option is: Mobile wallets will not be necessary for online payments.

Step-by-Step Explanation:

1. Understanding UPI (Unified Payments Interface):
UPI is an instant real-time payment system developed by the National Payments Corporation of India (NPCI). It allows direct account-to-account money transfers instantly between any two bank accounts using a mobile platform.

2. Impact on Mobile Wallets:
Traditional digital/mobile wallets require users to first load money into the wallet from their bank accounts before making payments. In contrast, UPI enables direct transactions between bank accounts without needing an intermediate digital wallet to hold funds. Therefore, one of the most direct consequences of UPI implementation is that maintaining a digital wallet is no longer strictly necessary for making online payments.

3. Evaluating Other Options:
- Digital currency replacing physical currency completely: This is an extreme statement and not a direct goal or guaranteed consequence of UPI.
- Drastic increase in FDI inflows: FDI (Foreign Direct Investment) depends on broader macroeconomic factors, policy frameworks, and market stability rather than a retail payment interface like UPI.
- Direct transfer of subsidies: Direct Benefit Transfer (DBT) primarily relies on the Aadhaar Payment Bridge System (APBS) and Jan Dhan bank accounts rather than UPI.