BHIM App - Frequently Asked Questions

BHIM App - Frequently Asked Questions

What is BHIM ?

• BHIM stands for Bharat Interface for Money.
• It is the UPI based payment system that allows the real time transfer of fund just using a single identity like name or mobile number of the users.
• As a part of the Digital India initiative by the Government of India the new mobile payment application is launched.
• The Prime Minister of India Narendra Modi has launched BHIM on 30th December of 2016.
• The app is dedicated to Dr. B R Ambedkar.
• This mobile application would encourage the people to make payment digitally.
• It would meet the aim of the Government to introduce the cashless economy in India.

Features of BHIM:

• It is a mobile application for online payment purpose. By using it the users can pay money through the smart phones.
• It is based on the “Unified Payment Interface” (UPI) technology.
• This mobile app is developed by National Payment Corporation of India (NPCI) in a joint collaboration with JUSPAY.
• The users can download the mobile app from Play-Store which is available at the Android, iOS and Windows platform.
• It pay and collect money from bank to bank using the mobile number or Virtual Payment Address (VPA).
• It enables digital transactions across the multiple banks.
• It can directly link with the bank account of an individual.
• It uses the Immediate Payment Service (IMPS) technology for which the users have to pay a minimal charge for the transactions of Rs 1 Lakh or more than that.

What is UPI ?

• The UPI (Unified Payment Interface) which empowers more than one bank accounts into the single mobile app of any bank.
• It can merge multiple banking features, merchant payments and fund routing under one umbrella.

What is VPA ?

• The Virtual Payment Address (VPA) is the unique identifier that one can use to pay and receive money on the UPI.
• It can be an email address which is used to transfer money.

Way to Use BHIM :

• The users need to download the app and after that they must verify their mobile number which is linked with the bank accounts of them.
• On verification the app would show all bank accounts which are related to the number. 
• The users must choose the bank from which they want to make the transaction and must enter the UPI pin for the payment confirmation.
• The mobile number is set as the payment address and one can change it later.

Advantages of BHIM :

• It is an open system, not a mobile wallet.
• Any kind of smart phone or any normal cheap phone can support the BHIM app.
• Internet connection is not essential to use the app.
• If the bank account is linked with Aadhar gateway, payments can be done by the thumb impression.
• The users can use the app for shopping by downloading the “Aadhar based” merchant app and bio-metric reader.
• There is no transaction charge.
• It also has the facility of “Spam report” to register the request of blocking the unknown person who request for money.
• It is available in 12 Indian languages.

Disadvantages of BHIM :

• The limit of total transaction is Rs. 20000 per day.
• The limit of every transaction is Rs. 10000 per day.
• It can be used only in India.

Which banks supports BHIM :

• The BHIM app is supported by many banks like SBI, Axis Bank, ICICI Bank etc.

Remarks :

• The app is downloaded by 18 million users till the end of March, 2017.