BHIM app : India under digital revolution.

Last week, Prime Minister Narendra Modi announced a new digital payments app named BHIM — Bharat Interface for Money — after Babasaheb Dr. Bhimrao Ambedkar.

BHIM app

Source: Indianexpress.com

From the date, since our P.M. announced demonetization in the nation, lots of things changed, India became more digital in the case of transactions and payments. Farmers who were once unaware of the fact that cards and bank accounts can be of good use, are now using it. All in once, India is on a steep forward mark of digitalisation and this will surely higher up the ranks of the nation the list of developing countries.

When the whole world was in wait of new years eve, India was waiting for P.M. Modi’s new announcement. The announcement gave birth to a new app named “BHIM app”, which is to be used for digital payments.

BHIM app works only on Android.

BHIM app

 The BHIM app only supports android based platforms. The dates for ios and windows version are not yet confirmed. Nice start by P.M. Modi by targeting the 80% android people out there.

What does BHIM do?

The BHIM app is supposed to support Aadhaar-based payments, where transactions will be possible with just a fingerprint impression. BHIM is a digital

 BHIM is a digital payment solution app based on “Unified Payments Interface (UPI)”  from the National Payments Corporation of India (NPCI), the umbrella organisation for all retail payments systems in India, means you have to be signed up for UPI-based payments on your bank account, which is also linked to your mobile phone number, that is the only way you can use BHIM app for digital payments.

BHIM will let you send and receive money to other UPI accounts or addresses. Also, you can send money via IFSC (Indian Financial System Code) and MMID (Mobile Money Identifier) Code to users who don’t have a UPI-based bank account.

You can also create your own QR (Quick Response) code for a fixed amount of money, which the merchant can later scan for confirmation.

Is BHIM similar to Paytm?

BHIM app

Source: Mashable.com

The answer to this ambiguity is NO! 

You can store a limited amount of money in a mobile wallet like Paytm, which you can send only to someone who is using the same wallet. Not in the case of BHIM, as we know now that it is UPI-based so it is directly linked to a bank account. All the payee needs is a bank account. If this account is UPI activated, you can just ask for the payee’s VPA or virtual payment address, and make the payment to that account.

“Encryption for BHIM is in line with what a Google Wallet or Apple Pay will be using, but let’s remember this is just one aspect of the overall security,” says Saket Modi, CEO and co-founder of Lucideus Tech, one of the security vendors involved with the UPI system as well as the BHIM app.

P.M. Modi said “We worked on the security of UPI’s common library. When (Erstwhile RBI Governor) Raghuram Rajan launched UPI, NPCI had made a library which it shared with all banks with net banking. They were asked to embed that common library inside their net banking application. So if you want to use UPI with just your bank, it means you have to download Pockets or the ICICI net banking application which is UPI-enabled, to do these transactions”.

Security Factor

BHIM app

Source: Mashable.com

The BHIM app has three levels of authentication.

For one, the app binds with a device’s ID and mobile number, second a user needs to sync whichever bank account (UPI or non-UPI enabled) in order to the conduct transaction. Third, when a user sets up the app they are asked to create a pin which is needed to log into the app. Further, the UPI pin, which a user creates with their bank account is needed to go through with the transaction.

“Even if your phone gets stolen nobody can transact until they know your UPI pin,” P.M. Modi says.

Banks supporting BHIM app

The list comprises of:

Allahabad Bank, Andhra Bank, Axis Bank, Bank of Baroda, Bank of Maharashtra, Canara Bank, Catholic Syrian Bank, Central Bank of India, DCB Bank, Dena Bank, Federal Bank, HDFC Bank, ICICI Bank, IDBI Bank, IDFC Bank, Indian Bank, Indian Overseas Bank, IndusInd Bank, Karnataka Bank, Karur Vysya Bank, Kotak Mahindra Bank, Oriental Bank of Commerce, Punjab National Bank, RBL Bank, South Indian Bank, Standard Chartered Bank, State Bank of India, Syndicate Bank, Union Bank of India, United Bank of India, and Vijaya Bank.

How to use it?

Watch the video, You will understand it better.

Endnotes on BHIM app

1.  Users can send money to their friend or family even if they don’t have the BHIM app, as it is linked directly to a bank account. A maximum of Rs 10,000 can be shared per transaction, and a total of Rs 20,000 can be sent within 24 hours.

2. BHIM lets you choose your preferred bank after it has verified your mobile number. The app will then ask you to set a passcode (4 digits), which you can choose. You will need this code every time you open the app. The UPI pin will need to authenticate the transaction.

3.  BHIM will support Aadhaar-based payments.

This is the time we all say out loud “#GoCashlessIndia.”

featured image source: Bhimapps.in

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