In an attempt to push digital payments further, Prime Minister Narendra Modi launched a new mobile application called BHIM on Friday, which integrates multiple modes of payment into a single interface. BHIM, an acronym for Bharat Interface for Money, allows customers to transact using mobile banking, unified payments interface (UPI), QR codes and Aadhaar based payments.
BHIM App - the modified version of UPI & USSD - will be every Indians hope for a corruption free, clean India: PM @narendramodi pic.twitter.com/2cUBxoDfR3
The app, currently available on the Android store, offers interoperability for UPI which means that users no longer need to download different banking apps to pay through UPI, which has had a slow start. Apart from that, the app will soon allow people to make cashless payments by using just their Aadhaar numbers.
In two weeks, India will radical shift to #digitalpayments with just their fingerprint with this BHIM we've launched today: PM @narendramodi pic.twitter.com/KCucxDt2ux
In the coming days, all the business in the country will happen through the BHIM app. In a way, Ambedkar's name will come at the centrestage of the whole economy. That process starts today. This will also work in cheaper phones and also without internet. In the next two weeks, we will bring new features allowing people to just use their thumbs to make payments.Narendra Modi, Prime Minister Of IndiaThat claim, however, is contradicted by the information available on the website of National Payments Corporation of India (NPCI). According to the FAQs on the site, the app requires a smartphone with an internet connection to work.
“To start using Bharat Interface for Money all you need is a Smartphone, Internet access, an Indian bank account that supports UPI payments and mobile number linked to the bank account. Link your bank account to UPI through the app,” NPCI said.
The NPCI website also clarified that there is no extra charge for transactions through the app but banks might charge a “nominal fee” for UPI transactions.
The application already has 32 public and private sector banks on it. There is a cap of Rs 10,000 per transaction and a limit of Rs 20,000 for total transactions in a day. The stand-out feature of the app, apart from its UPI integration, is going to be the Aadhaar-enabled payment option which is expected to start functioning in the next couple of weeks.
“There are more than 100 crore Aadhaar card holders in the country. The work is on to enroll people less than 14 years of age. On the other hand, there are more than 100 crore phones in the country,” Modi said while adding that Aadhaar based payments can become universal in the country.
Felicitating winners of the Digi Dhan Yojana, the PM said that those who are helping the country go cashless deserve respect and admiration. Citizens helping each other are helping the move towards a shining India, he added.
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