what is bhim upi
BHIM (Bharat Interface for Money) UPI (Unified Payments Interface) is a digital payment system developed by the National Payments Corporation of India (NPCI), an organization that operates retail payments and settlement systems in India. BHIM UPI was launched by the Government of India in December 2016 as part of its drive to move towards a cashless economy and promote digital payments.
Here’s a breakdown of BHIM UPI:
- Unified Payments Interface (UPI): UPI is an instant real-time payment system that facilitates inter-bank transactions by using mobile phones. It merges multiple banking features, seamless fund routing, and merchant payments into one platform. UPI allows users to transfer money across different banks with the help of a single identification and password. It takes away the need to enter NFSC code, bank account numbers, etc., for each transaction.
- BHIM App: This is a mobile application launched by the Indian government to facilitate e-payments directly through banks. The app is built over the UPI infrastructure and allows users to instantly transfer money and make retail payments. The BHIM app supports all Indian banks that are UPI-enabled.
- Key Features of BHIM UPI:
- Send & Receive Money: Users can send and receive money instantly using UPI payment addresses or scanning QR codes.
- Check Account Balance: Users can check their bank account balances in real-time.
- Create Custom Payment Address: Besides the default payment address, users can create a custom payment address.
- Mobile Number as Payment Address: UPI uses a mobile number as a virtual payment address, making it easier for users to remember and share.
- 24/7 Availability: It operates 24/7, allowing users to perform transactions anytime.
- Security: BHIM UPI transactions are secure as they are authenticated by a two-factor method – the mobile number and the UPI PIN. The UPI PIN is a number set by the user and is required for every transaction, ensuring an added layer of security.
- Interoperability: UPI is interoperable, meaning it allows funds to be transferred across different banks and wallets using a single platform.
- Transaction Limits: There are limits on the amount one can transact using BHIM UPI, both per transaction and per day, to ensure safety.
- Utility: It can be used for various purposes, including peer-to-peer money transfers, bill payments, mobile recharge, and merchant transactions.
- QR Code: Merchants can generate a UPI QR code for their businesses, which customers can then scan using any UPI app to make payments directly from their bank accounts.
In summary, BHIM UPI is a revolutionary step in the Indian digital payment landscape, simplifying the process and reducing the reliance on physical cash and cards. It has paved the way for a more inclusive and efficient financial system in the country.