The BHIM (Bharat Interface for Money) App was launched by Prime Minister Narendra Modi on 30 December 2016. The main aim was to facilitate easy cashless payments post demonetisation. Here are some things about the BHIM app that you should know.
Q1. What is it?
A1. The BHIM app is an aggregator of United Payments Interface (UPI) services across various banks, developed by the National Payments Corporation of India (NPCI)
Q2. What does it do?
A2. It enables a range of cashless transactions across any two bank accounts, via a smartphone. These can be conducted either online via the internet, or offline via Unstructured Supplementary Service Data (USSD) – the same GSM technology used to transmit text messages.
Q3. What is needed to operate the app?
A3. You will need a smartphone, your mobile number registered to your bank account, a Visa, Maestro or RuPay debit card, and the BHIM App (available for Android phones and iPhones).
Q4. What can the app be used for?
A4. The app can be used for different kinds of transactions.
Q5. What are the hidden costs?
A5. None. This is especially attractive for small merchants, whose bottom-lines are adversely affected by the 1% to 2% transactions fees levied by other modes of payments.
Q6. So, how do I start?
A6. Setting up and using the app is extremely easy.
Your profile page will look like this:
Q7. How to start transacting using BHIM App?
A7. To the app, you as a consumer or merchant are identified by either your OR code or your payment address, as per the sample shown above.
To pay a merchant or person who has a QR code displayed, physically on their counter, or on their phone, simply click the ‘Scan and Pay’ option, scan the code, enter the amount, and your MPIN to confirm the transfer. That’s it.
Q8. What if you don’t have a smartphone?
A8. No need to worry, BHIM works for everyone.
Q9. But anyone can open the app and use it on my phone, right?
A9. Wrong. The app auto-exits after 90 seconds of inactivity to ensure that such a thing does not happen.
Related: Go the plastic way! [infographic]
Q10. What happens if I switch handsets or mobile operators?
A10. Nothing. As long as your mobile number is the same, BHIM does not get affected by handset changes or number porting to a different operator.
Interesting. I'm in! BHIM me up!
While credit cards come with a host of benefits, they must be used carefully, and never in these situations!