BHIM APP! A move towards Cash-less India, A Digital India!
Prime Minister Narendra Modi made his next move, in support of Demonetization, by launching a Government of India’s very own digital payment service app called the BHIM app, on December 30, 2016.
The app was named so, in honouring Bhimrao Ramji Ambedkar, the principal architect of The Constitution of India.
Know UPI before you get into the BHIM app?
Reserve Bank of India (RBI), under their visionary hood of making India rely less on cash and more on digital payments, launched the UPI system for instant digital payment. The app is developed by National Payments Corporation of India (NPCI), a RBI regulated organisation.
So what exactly is this UPI?
Unified Payment Interface, in short UPI, is a quick and easy payment system, that allows multiple bank accounts (associated with UPI service), banking transactions such as fund transfer, payment to any retailer and other such banking services, to be utilised through a single mobile application service.
What is BHIM app all about?
BHIM is an acronym for Bharat Interface for Money. It is a smartphone app that makes you do the payment transactions digitally using UPI system.
What makes BHIM app so popular?
- You don’t need to fill in the bank details, again and again, every time you do any digital transaction.
- Merchants and other beneficiaries with Non-UPI bank accounts are also eligible to receive the funds through BHIM app’s other payment options such as via IFSC, MMID. The only requirement is that the recipient needs to have a bank account.
- Earlier, UPI based services involved the use of a separate app for the respective banks. With BHIM app, this pain has been eased as you can simply link any bank (with a mobile number) with BHIM app and start using it.
BHIM App, How it works?
BHIM app is currently available only on Android platform of smartphones. So the primary requirement is to have an Android mobile with an internet connectivity needed every time you do any transaction.
Once you download the app from Google Play Store, you can start with it by registering for UPI service and creating a Virtual payment address (VPA).
If you have registered your mobile number with your bank then you can also use mobile number alternatively, to do the transaction.
Once you Register with BHIM app, it will create a 4 digit passcode which you will need to enter every time you do any transaction.
Advantages of BHIM app over other available mobile wallet apps!
Let me make it clear that BHIM app is not a mobile wallet. It is simply an extension of banking service but in an instant and digital manner.
The BHIM app allows you to transfer and receive the funds directly from your bank accounts, whereas mobile wallet apps let you store a particular sum of money into their account which you can use it for future transactions.
The mobile wallets available out there lets you save multiple bank details, so when you’re doing any transaction you can simply choose one bank amongst the list and can proceed with the transaction. This is an advantage of using mobile wallet app over BHIM app which allows usage of particular linked bank account only.
But the biggest limitation in using these mobile wallets is that the transaction between two parties will proceed only when both are using the same mobile wallet.
What all types of transaction you can do with BHIM app?
Through Bharat Interface for Money, you can make following type of transaction,
1. Transaction through Payment Address generated through UPI e.g amol@ICICI If you’ve registered with BHIM app using ICICI account.
2. Send Money to Aadhaar Number
3. Transaction using a Mobile number
4. Transfer Money through MMID and Mobile No.
5. Transfer Money through IFSC code and Account No.
6. For making payment to any merchant shop you can also utilise the scan and pay option.
Are there any charges for doing any transaction through BHIM app?
The transaction service through an app is free of charge. However, the bank may impose a nominal fee for utilising the services such as UPI or IMPS.
Do BHIM app requires filling of bank details while registering?
It is insisted that you register your mobile number with your bank. So when you’re registering with the BHIM app, the only thing you need to enter is your debit card details and your mobile number. As you’ve already registered your mobile number with the bank, the app automatically fetches all the bank account details.