With reference to digital payments, consider the following statements:

1. BHIM app allows the user to transfer money to anyone with a UPI-enabled bank account.

2. While a chip-pin debit card has four factors of authentication, BHIM app has only two factors of authentication.

Which of the statements given above is/are correct?

The correct answer is 1 only.

Step 1: Analyzing Statement 1
BHIM (Bharat Interface for Money) is a payment app that lets users make simple, easy, and quick transactions using Unified Payments Interface (UPI). It allows direct bank-to-bank money transfers to anyone with a UPI-enabled bank account using their UPI ID (VPA), mobile number, or bank account details with IFSC code. Therefore, Statement 1 is correct.

Step 2: Analyzing Statement 2
BHIM app features three factors of authentication (not two):
1. Device binding (the app binds to the mobile device and SIM).
2. Login PIN/Biometric for opening the app.
3. UPI PIN for completing financial transactions.
On the other hand, a standard chip-and-PIN debit card relies on two factors of authentication (the physical card itself as something you have, and the PIN as something you know). Therefore, Statement 2 is incorrect.

Conclusion:
Since Statement 1 is correct and Statement 2 is incorrect, the correct choice is 1 only.