What is BHIM (Bharat Interface for Money)?
Bharat Interface for Money (BHIM) is a state-owned mobile payments application developed by the National Payments Corporation of India (NPCI). Launched on December 30, 2016, BHIM is built on the Unified Payments Interface (UPI) and Immediate Payment Service (IMPS) infrastructure to enable quick, direct bank-to-bank transfers. It supports all Indian banks that participate in UPI and allows users to send or receive money instantly, 24/7, including on weekends and bank holidays.
How Does BHIM Work?
- Registration and Linking: After downloading BHIM, the user registers their mobile number (which must be linked to a bank account) and selects one or more bank accounts to link with the app.
- Virtual Payment Address (VPA): Each user creates a unique UPI ID (for example, name@bank), which serves as their payment address.
- Authentication: To complete any transaction, the user enters a secure 4 or 6-digit UPI PIN set during registration.
- Transaction Flow: When a user initiates a payment by entering a VPA, scanning a QR code, or using a beneficiary’s mobile number BHIM routes the request through NPCI, which debits the payer’s bank and credits the payee’s bank in real time.
- Notifications and History: Both parties receive instant confirmation messages, and the app maintains a transaction history for easy reference.
Feature of BHIM (Bharat Interface for Money)
- Send Money: Quick transfers via UPI ID, account number with IFSC, or by scanning QR codes.
- Request Money: Generate a payment request that the payer can approve.
- Scan and Pay: Instantly pay merchants or individuals by scanning their QR codes.
- Balance Check: View linked bank account balances without leaving the app.
- Multi-Bank Linking: Link and manage multiple bank accounts in one place.
- Language Support: Available in 20+ Indian languages for broader accessibility.
- UPI Lite and Aadhaar Payments: Supports on-device wallet features and Aadhaar-based authentication for added convenience.
Benefits of BHIM (Bharat Interface for Money)
- Instant and 24/7 Payments: Transfers happen in real time, any day, any time.
- High Security: Transactions require a secure UPI PIN and optional biometric or app-password protection.
- Interoperability: Works across all UPI-enabled banks and third-party apps, reducing the need for multiple wallets.
- Low Cost: Designed as a low-cost alternative to cash and cards, with no fees for most transactions.
- Financial Inclusion: Simplifies digital payments for users with basic smartphones and limited bank access.
Uses of BHIM (Bharat Interface for Money)
- Peer-to-Peer (P2P) Transfers: Send money to friends, family, or service providers instantly.
- Peer-to-Merchant (P2M) Payments: Pay shops, restaurants, and online merchants by scanning QR codes.
- Bill Payments: Settle utility bills, mobile recharges, and other recurring payments.
- Money Requests: Request and receive payments without sharing bank details.
- Aadhaar-Enabled Payments: Transfer funds using Aadhaar number authentication.
- Offline and On-Device Wallet (UPI Lite): Perform small-value transactions without an internet connection.
Examples of BHIM (Bharat Interface for Money)
- Person-to-Person: Ankur sends ₹2,000 to her brother for rent using his UPI ID in under 10 seconds.
- Merchant Payment: Rohan pays for lunch at a café by scanning the merchant’s BHIM QR code.
- Bill Settlement: Anu pays her electricity bill of ₹1,500 directly through the BHIM app.
- Aadhaar Transfer: A farmer receives a government subsidy payment credited to his account via Aadhaar authentication.
Each example highlights how BHIM leverages UPI to make transactions simple, secure, and immediate.
How to Use BHIM App Step by Step Process?
- Download and Install: Get BHIM from Google Play Store or Apple App Store.
- Open and Select Language: Launch the app and choose your preferred language.
- Register Mobile Number: Enter the phone number linked to your bank account; receive an SMS for verification.
- Link Bank Account: Select your bank from the list; BHIM fetches your account details automatically.
- Set UPI PIN: Create or enter an existing UPI PIN for your account to authorize transactions.
- Create UPI ID: Choose a unique VPA (e.g., yourname@bank).
- Start Transacting: Use the “Send,” “Request,” or “Scan & Pay” options to make payments; view balance and history as needed.
What is BHIM UPI Limit?
- Per Transaction: Up to ₹100,000 (₹1 Lakh) for normal UPI payments; certain categories like Capital Markets and Collections allow up to ₹200,000 (₹2 Lakhs), and IPO/Retail Direct Scheme payments up to ₹500,000 (₹5 Lakhs) per transaction.
- Daily Cap: For BHIM users, the maximum total transaction value is ₹100,000 (₹1 Lakh) per day, with up to 20 transactions. Newly registered users may face an initial limit of ₹5,000 during their first 24 hours.
- Bill Payments: Capped at ₹40,000 per transaction when paying utilities or other bills via BHIM.
What are BHIM UPI Charges?
- For Individuals: No charges are levied on UPI transactions through BHIM, whether sending or receiving up to ₹100,000 per transaction.
- For Merchants: While individuals enjoy free transactions, merchants may incur interchange fees based on transaction type, as per RBI and NPCI guidelines.
Purpose of BHIM App
The primary goal of the BHIM app is to drive India’s transition toward a cashless economy by providing a simple, secure, and interoperable digital payments platform. It promotes financial inclusion by enabling easy access to digital transactions for users across urban and rural areas, aligns with the Government of India’s Digital India initiative, and ensures that even basic smartphone users can participate in the formal banking system without relying on multiple wallets or cash.