“Technology is the power given to the poor”, declared Narendra Modi after he took yet another grand step with the introduction of the BHIM app in the Digi Dhan Mela. BHIM stands for Bharat Interface For Money, and is the new Android app which will play a vital role in cashless transactions in the wake of a new India post demonetisation.
How does BHIM work?
The BHIM app is available on the Android as of now, but slowly it will be utilized in every device to make cashless payments through a Unified Payment Interface (UPI). Transactions done through BHIM app is free of processing charge. However, transaction cost will be levied by the user’s bank.
Benefits of BHIM App: How It Is Different From Other Apps
BHIM employs great flexibility with 30 major banks in its menu. For a transaction to be successful via BHIM app both the sender and the receiver should have a UPI enabled bank account. Then an account can be made in the app using only the registered mobile number. BHIM cannot be compared to other mobile wallet apps. In mobile wallet apps, the user has to transfer some amount of money to the app and then make cashless payments. But BHIM provides a direct link to the bank account as it works via UPI. So the money can be transferred to an account holder not having BHIM app, but only a UPI enabled account. Another advantage of BHIM app is that it does not require the account number of the receiver to complete transfer of money. When the bank enables UPI with an account a Virtual Payment Address (VPA) is generated in the form “account_virtual_name@bank_name”. This VPA or the bank IFSC and MMID code is required for money transfers.
Installing And Using The BHIM App Step By Step
- After downloading this app an account has to be created in BHIM for all transactions in your desired language (English and Hindi in the starting pack).
- Then a 4-digit password is to be created and the app will ask for permission to send SMS and read receipts.
- After allowing the app to continue, it will verify your phone number and scan data from all bank accounts linked to it.
- Then listing all your bank accounts it will ask you to select any one account with UPI linked to it. If you do not have a UPI linked account you will require the last 6 digits of your visa debit card and the card expiry date to link BHIM to your bank account. Then a UPI pin number will be automatically generated. Then there are three methods of money transfer and either one can be used:
- VPA of the beneficiary
- QR code
- IFSC and MMID code.
Download BHIM app for Android – Link here
Different Modes Of Transactions In BHIM App
The UPI code or VPA mode demands that the beneficiary should also have a UPI enabled account. In the case of QR code transfers, the QR code needs to be scanned for a certain amount of money as chosen by the user for transactions. Then the amount transferred will be deducted from that money. The absence of either of the two options will require the bank IFSC and MMID codes for transactions to be done.
Success Rate Of BHIM App
Ever since its introduction by Narendra Modi, the BHIM App has been a very successful. It has been one of the most downloaded apps for financial transactions. Reviews say that BHIM app has revolutionized the form of digital payments. This app aims at changing the outlook of people towards cashless transactions and has so far been successful. Even though there were a few complaints and queries raised because an app with a new interface takes time to get used to, but most people were satisfied with the app. It is easy to download and has a user-friendly design which still continues to attract more and more customers.