BHIM Full Form

BHIM stands for Bharat Interface for Money. It is an online payment app that makes transactions very quick and fast via UPI (Unified Payments Interface) platform. It is developed by a government body named NPCI (National Payments Corporation of India). Launched by Honorable Prime Minister Narendra Modi on 30 December 2016, its goal is to increase cashless transactions by facilitating e-payments directly through banks. 

It is available in 13 languages till date and might be available in all recognized languages of INDIA. It came officially in the budget of 2017, by then Finance Minister Arun Jaitley. Individuals will receive referral money, while merchants who accept payments will receive payback. With over 4.2 billion digital transactions in October 2021, the BHIM UPI platform surpassed a milestone of $100 billion in value (7.71 trillion, or 7.71 lakh crore).

About NPCI

The Reserve Bank of India (RBI) and the Indian Banks’ Association (IBA) established the National Payments Corporation of India to operate retail payments in India under the provisions of the Payment and Settlement Systems Act, 2007, to build a strong payment and settlement infrastructure and services in India.

Working

In this user can send money directly to the UPI payment address or also on a Non-UPI account via scanning the QR code(Quick Response Code) or by Mobile payment ID. Mobile wallets have money in them example GPay, Paytm, etc which holds money in them, BHIM is the mode that can transfer money to another bank. Moving towards Digital India one can now avail of BHIM services by using Aadhaar authentication. To use BHIM, you must first create a bank account and create a UPI PIN for it. 

The mobile number is used as a payment address, which makes the transaction procedure easier. The software is approximately 1.24 MB in size. Users are prompted to send an SMS, enroll their mobile number using the last six numbers of the debit card as well as the expiration date create a four-digit password, and select a bank account when they first access the app. Both Android and iOS users can use the BHIM app.

Security 

There is an app passcode that is encrypted and known by the users if someone needs to initiate a transaction. To complete the transaction, you’ll need to use something called a UPI Pin.

Benefits

Sending and receiving money: One can send money anytime whether there is a bank holiday or any kind of holiday, the facility is available 24*7. Also, sending money and requesting the same can be done by entering of virtual UPI ID or also by directly entering a mobile number (The number needs to be registered with BHIM also).

Switching between accounts: Use BHIM App to switch between several bank accounts.

Limit: A max of Rs. 10,000 per transaction is allowable, with a maximum of Rs. 20,000 per 24 hours. There are no charges for transactions between ₹1 to ₹100,000.

Offline: The BHIM framework *99# can be used without access to the internet.

IPO (Initial Public Offering): If anyone applying for IPO, one can avail of the opportunity using the BHIM UPI ID on the IPO application, and then approve using the BHIM app.