Answer: (d)

Explanation:
(a) Statement 1 is correct: UPI is a real-time payment system facilitating instant bank-to-bank transfers. The Digital Rupee is a sovereign digital currency issued by the RBI and is considered equivalent to paper currency in digital form (a direct liability of the central bank).

(b) Statement 2 is correct: UPI involves instant settlement between banks through NPCI infrastructure. In the Digital Rupee system (CBDC), transfer happens directly between digital wallets without inter-bank settlement in the traditional sense.

(c) Statement 3 is correct: UPI transactions are recorded in bank statements. CBDC transactions occur between wallets, and while RBI maintains the ledger, they may not reflect in traditional bank statements in the same way.

(d) Statement 4 is Incorrect. This is wrong because: In UPI, liability lies with banks (not users). In Digital Rupee, liability lies with the Reserve Bank of India, not banks or users. In case of CBDC, liability lies with RBI.