Prime Minister Narendra Modi has recently launched a mobile app called ‘BHIM’ (BHarat Interface for Mobile), as he urges people to make digital payments a “routine” to help make India a cashless economy. The BHIM app is a modernised version of UPI (Unified Payment Interface) and USSD (Unstructured Supplementary Service Data).
If you’ve come here looking for how the app will work, you’ve come to the right place! Let’s get into the working of BHIM.
BHIM: How it works
Developed by National Payments Corporation of India (NPCI) and is available for Android smartphones via Google Play Store, the BHIM app comes with a simple interface and is built for ease of use. Weighing in at just 2MB, it’s quite a no-frills UPI app, and doesn’t even require an Internet connection since it can also work on simple Android feature phones.
On starting the app, you will be asked to give permission to send an SMS and register your phone number. Your registered mobile is your UPI address. You also get an option to create your customised UPI address, which could be your nickname or full name.
Once registered, you will be asked to set a 4 digit pass-code, and then choose your bank.
The BHIM app comes with basic features such as the ability to send or receive money, or scan and pay using QR Code, linking of accounts, saving profile of the user, changing the language, recording beneficiary details and providing balance inquiry.
The application will be common across all banks and other financial institutions. If you have an account in two or three different banks, you can easily switch between banks in just a few clicks.
As UPI is built on similar grounds like the Immediate Payment Service (IMPS), the transaction takes place in seconds.
The cherry on top is that the payment system works 24 hours a day, 7 days a week and 365 days.
At the moment, the BHIM app comes with a caveat. Although you can transfer as low as ₹1 and maximum of ₹20,000 per day, in a single transaction you cannot transfer more than ₹10,000.
According to PM Modi, the BHIM app has been named after Dr Bhim Rao Ambedkar, the father of the Indian Constitution. The app has been so named since it is “for the small merchant, farmers in far-flung areas and tribes,” Modi said.
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