BHIM app is a simple UPI (United Payments Interface) based application for carrying out digital financial transactions. BHIM stands for Bharat Interface for Money. India after the recent demonetisation move has seen a rapid shift towards the less cash economy, digital banking and digital Payments. Government of India also announced two schemes, Lucky Grahak Yojana and Digi Dhan Vyapar Yojana to reward consumers and merchants who shift to digital modes for settlement of purchases.
Why is BHIM app important?
United Payments Interface (UPI) is a brilliant application that was launched by National Payments Corporation of India (NPCI) that allows transfer funds from your account to the account of a payee by entering a virtual ID and a PIN. BHIM is the simplified version of UPI that facilitates digital payments directly from bank account. BHIM app is now available for downloading from Google Play.
Presently, Android version of BHIM app is launched. IPhone version will be launched soon. BHIM app with a facility to authenticate the transaction through fingerprints reading is also being launched.
What is the difference between BHIM/UPI app and e-Wallet?
The main advantage of BHIM/UPI application compared to an e-wallet is that you earn interest on the amount till payment is effected. BHIM/UPI app is linked to your bank account. Hence on sending request to effect a payment, the amount is debited directly from the Bank account. When receipt request is made, fund is received directly in bank account. But, in an e-wallet, before effecting any payments through an e-wallet, the fund has to be first loaded to the wallet. You earn interest on the amount with a bank so long as the same is in the account. But on balance in an e-wallet, you do not earn any interest.
Second advantage is that BHIM/UPI application can be used to transfer / request funds to/ from any bank account. You need not download separate applications. But, in an e-wallet fund transfer is possible only between the users of same application.
Many banks have launched UPI based apps with separate brand names. But the truth is that with UPI app of any bank, you can carry out the transactions. Your account need not be with the bank which has provided the UPI app.
Is there any difference between UPI app and BHIM app?
UPI app requires a net connection. However, the interface behind BHIM app can be accessed by dialling *99# ( USSD – Service or Unstructured Supplementary Service Data). Hence an internet connection is not essential for BHIM app.
For UPI app, a smart phone is required, but the BHIM app functions on feature phones too.
How can a shopkeeper receive money from customers?
Shopkeepers can use the BHIM app and receive money from customers through BHIM app, UPI app, or USSD service. If the customer has linked his Aadhar ID to his bank account, the merchant can use Aadhar pay app also for receipt of payment. In this method, a finger print reader along with a basic Android smart phone with the merchant will be sufficient. The customer needs to just type in his Aadhar number in the phone of the merchant and approve the transaction by placing the thump on the finger print reader. The customer need not carry Aadhar card or any phone.
How to get BHIM app?
You should have registered your mobile phone number with the bank for mobile banking or SMS service.
1. Download the BHIM app from Google play store
2. Register your bank account through the app.
3. Set up a PIN (Remember to keep it secret).
Your phone is now ready to send or receive amount to another person, check balance, scan a QR code to make payment, without revealing your bank account number or phone number.
Which banks support BHIM app?
Almost all banks have launched the UPI app. If a bank supports UPI app, then you can access your account with that bank through BHIM app too. Integration of BHIM app with existing UPI app / launch of independent BHIM app by the banks are progressing.
Major banks that have successfully launched UPI app are State Bank Of India, Punjab National Bank, HDFC Bank, Canara Bank (eMpower), ICICI Bank, Federal Bank (Lotza), Bank of Maharshtra (Maha UPI) and South Indian Bank ( SIB M-pay)
