The correct answer is 1 only. Key Points Aadhaar Enabled Payments: Aadhaar Payment Bridge (APB): A payment can be made to a person’s bank account via his/her Aadhaar number, provided it is linked to his/her Aadhaar number. Hence, Statement 1 is correct. The government of India transfers benefits and subsidies directly to the beneficiaries’ bank account through APB. Aadhaar Enabled Payment System (AEPS): AEPS is the platform in which a person can do basic banking transactions including withdrawal, deposit cash, fund transfer, etc., from his/her bank account at Micro-ATMs using biometric authentication. Hence, Statement 2 is NOT correct. The bank is chosen by the resident as it is a resident present transaction. Additional Information Aadhaar Pay: ​It is a merchant version of AEPS. The Application works on a low-cost Android phone with a single finger bio-metric device. It enables the merchant to take cashless payment from his customers. It was launched in 2017. Pay to Aadhaar: It is a facility available on the UPI platform integrated in the BHIM app. It enables Person-to-Person (P2P) remittance using the Aadhaar number of the recipient as a financial address. The receiving Aadhaar number should be linked with his/her Aadhaar number. This was also launched in 2017.