Detailed guide to BHIM UPI in India www.deekpay.com

BHIM is an acronym for Bharat Interface for Money, theNational Payments Corporation of India (NPCI) launched in December 2016digital paymentsystem.BHIM is a simple and securepayment methodThe funds can be transferred instantly from one bank account to another.

BHIM is based onUnified Payment Interface of India (UPI) technology, which enables users to send and receive funds using a virtual payment address (VPA) associated with their bank account.

BHIM UPI has been recognised for its ease of use, security and accessibility in theIndiaWidely popular.

In this article, we will explore the features, benefits and how BHIM UPI is revolutionising the digital payments landscape in India.

What is BHIM UPI

BHIM (Bharat Money Interface) is a payment and remittance mobile application used in India to make digital purchases and payments in a seamless, secure and reliable manner. BHIM is built on UPI(Unified Payments Interface of India) as the underlying payment technology. Leveraging the power of UPI, BHIM offers instant online payments through over 170 Indian banks connected to the UPI ecosystem. BHIM uses UPI payment networkMake payments and remittances. This extends the reach of BHIM UPI as there are innumerable banks and financial institutions connected to the UPI ecosystem. Since BHIM uses UPI in the backend, it is also commonly referred to as BHIM UPI. BHIM is operated by the National Payments Corporation of India (NPCI), which oversees various payment norms and systems in India, was built and developed.

Statistical data of BHIP UPI

When BHIM UPI was launched in December 2016, the BHIM Android app was downloaded more than 10 million times in the Google Play shop within the first 10 days of launch. During that same period, BHIM processed over 2 million transactions through the UPI platform. Since then, BHIM UPI has been rapidly expanding its user base and adoption rate over the past few years. For example, note the chart below from Statista, which shows the growth of transactions in the BHIM ecosystem between January 2017 and October 2022

Another key indicator of the BHIM UPI is the statistics from the mobile app store^ as shown below:

In the Google Play shop, BHIM's Android app has been downloaded more than 50 million times and has an average rating of 4.4 with 1.64 million reviews. On the Apple App Store, BHIM's iOS app has an average rating of 4.5 and 103,000 reviews. (Statistics through 10 June 2023)

These statistics prove the popularity of BHIM UPI mobile apps in India.

How BHIM UPI works

BHIM UPI is a simple, secure payment system that allows users to send and receive money instantly.

The following is a step-by-step guide to how the BHIM UPI works:

Step 1: Download and install the BHIM UPI app. The first step is to download the BHIM UPI app from Google Play Store or Apple App Store and install it on your smartphone. Step 2: Select your preferred language The BHIM app currently supports 20 languages including English, Hindi, Marathi, Tamil, Telugu, Malayalam, Oriya, Punjabi, Gujarati, Marwari, Haryana, Bhojpuri, Urdu, Konkani, Manipuri, Mizo, Khasi, Kannada, Bengali, and Assamese. Step 3: Select the SIM card with the mobile number registered with the bank. Make sure you select the SIM card that is tied to the mobile number you used to register with the bank. This is especially important if you have a dual SIM phone. Step 4: Set your app password The BHIM app requires a password to log in; set your password in this step. Step 5: Associate your bank account: Next, you need to associate your bank account with BHIM UPI. Select the bank account option and provide your bank account details. Step 6: Set up your UPI PIN: After associating your bank account, you need to set up a UPI PIN, which is a 4-6 digit code that will be used for all transactions. This PIN will be required every time a transaction is made using BHIM UPI.You can do this by providing the last 6 digits and expiry date of the debit card linked to your bank account.

The following image from the BHIM website encapsulates the above steps in a pictorial format.

Advantages of BHIM UPI

BHIM UPI is a digital payment system that allows users to instantly transfer funds from one bank account to another using a mobile application. It is a digital payment platform initiated by the Government of India that offers multiple advantages for making payments.

Instant Money Transfer: BHIM UPI offers instant money transfer, which means you can send and receive money instantly, 24/7. You don't have to wait hours or days for money to be deposited into your bank account. This feature is especially useful when you need to make an urgent payment. Ease of Use: BHIM UPI is a user-friendly platform that is easy to use. You don't need to be a tech-savvy person to use the platform. All you need is a mobile phone and an internet connection to use the BHIM UPI application. It is an easy and convenient way to make payments. Secure Payments: BHIM UPI is a secure platform that ensures safe and secure transactions. It uses a two-factor authentication (2FA) system, which means you have to enter your PIN and fingerprint to complete the transaction. This ensures that only authorised users can carry out transactions. No bank details required: With BHIM UPI, you don't need to share your bank account details to carry out transactions. All you need is the payee's UPI IDThis is a virtual address that is linked to their bank account. This makes the transaction process more secure as you don't have to share sensitive information. Widely Accepted: BHIM UPI is widely accepted by merchants and vendors across India. You can use BHIM UPI to make payments at retail shops, restaurants, petrol pumps and other places that accept digital payments. This makes it a convenient way to make payments. Doesn't rely on an internet connection: one of the biggest advantages of BHIM UPI is that you don't have to rely on an internet connection to use it! This is very unique when it comes to digital payments. If you don't have network coverage, simply dial *99# on your mobile phone to access all the features of BHIM, just like on the mobile app. In fact, you can also register for BHIM using *99#.

Limitations of BHIM UPI

Following are some of the major limitations of BHIM UPI:

TRANSACTION LIMITS: BHIM UPI has set transaction limits which may vary depending on the bank and type of account. For example, some banks may have a daily transaction limit of Rs. 10 lakhs (INR 1,00,000) while others may have a higher limit. There may also be a limit on the number of transactions that can be made in a day. Availability: While BHIM UPI is widely accepted by merchants and vendors across India, it may not be available everywhere. Some merchants may still prefer cash payments or may not have the infrastructure required to accept digital payments. Bank Account Requirement: To use BHIM UPI, you must have a bank account with a participating bank. If you do not have a bank account or your bank is not a participant in the BHIM UPI network, you will not be able to use this payment method. Security: While BHIM UPI provides robust security features, there is always a risk of fraud or unauthorised access to your account. It is important to be vigilant when conducting transactions and to ensure that you do not share your UPI PIN or other sensitive information with anyone. Despite these limitations, BHIM UPI has been widely adopted and popularised in India and continues to drive the country's move towards progressive digitisation and a cashless economy.

concluding remarks

The rise of digital payments in India is unprecedented and BHIM UPI has played a crucial role in this transformation. As more and more people become accustomed to using digital payment methods, BHIM UPI is likely to continue to grow in popularity.

The Government of India's push for a cashless economy and the growing popularity of smartphones and internet connectivity is also expected to drive the growth of digital payments in India. The future looks bright for BHIM UPI and digital payments, with several new features and enhancements being introduced on a regular basis to enhance the user experience. For example, the launch of BHIM 2.0 enabled users to link overdraft accounts, make recurring payments and use QR codes for transactions. Expanding BHIM UPI to international markets and integrating new technologies such as blockchain and artificial intelligence could further enhance its functionality.

All in all, the future looks bright for BHIM UPI and digital payments in India, and we are likely to see more innovative and user-friendly payment options in the coming years. As India continues to move towards a cashless economy, BHIM UPI is expected to continue to be at the forefront of this transition, providing users with fast, secure and convenient digital payment options.

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