Bharat Interface for Money (BHIM) App: Money Transfers Simplified

A post-demonetized India is seeing a tangible shift towards card-based and mobile wallet payments. Until recently, India thrived primarily on cash deals. After ₹500 and ₹1000 were demonetized, many switched to online transactions. People use Paytm and Freecharge mobile apps, to transfer money or for daily proceedings. The Indian Government has given a nod to the Bharat Interface for Money (BHIM) app for your smartphone, to make online payments easier and faster by facilitating e-payments directly via banks and simplify cashless transactions.

BHIM Integrates Multiple Banks

BHIM uses Unified Payments Interface (UPI) for cell phones. This is BHIM’s biggest USP: it works across all banks and users do not need to use separate apps in case they have multiple accounts in different banks. So, if a user has bank accounts in 3-4 UPI enabled banks, BHIM will combine all his/her banking functions to enable cashless transactions. It saves time and the circumvents the hassles of multiple mobile wallet accounts.

No Internet Connectivity/ Smartphone Required

Operating on the rationale that most residents in India have mobile phones, though without internet connectivity, the BHIM App can transfer funds from one bank account to another without an internet connection! For that you need to dial *99# from any mobile phone. You can send money, check your balance or see transaction history.

BHIM Is Secure

Considering the BHIM App is directly linked to bank accounts and is created by the government of India, the app will clearly appear as a more trustworthy option for the Indians. Some mobile transactions with other apps require you need to add money to your mobile wallet via net banking or credit/debit card each time it runs out of money.

The BHIM app has three level authentications making it secure. BHIM verifies your device ID or mobile number, the bank account which you are linking to this app and third the UPI Pin to complete the transaction. Open the app and enter your mobile number. It will store your mobile number and verify it. Next, you have to select the bank in which you have an account. The app will search the bank’s account linked to your mobile number and display it. If the account number is correct, select it. The account will now be linked to the app. You will be given a default id <yourmobilenumber>@UPI. You can also set your unique ID (your name), subject to availability. You will be shown a QR code, which you can store or print. You will also be asked to set a pin code for security.

You can also request money from other BHIM users through the app. While the BHIM App is government’s initiative for easy online payments, Paytm has emerged as one of the most widely accepted ways of offline digital transaction. Many other mobile wallet companies such as MobiKwik, Freecharge, PayU Money are likely to take a hit with the growing popularity of the BHIM app.