What is BHIM?
BHIM (Bharat Interface for Money) is a mobile payment app developed by the National Payments Corporation of India (NPCI), based on the Unified Payments Interface (UPI).
It was named after Dr Bhimrao Ambedkar.
When BHIM was launched?
BHIM was launched on 30 December 2016.
Why BHIM was launched?
BHIM was launched to facilitate e-payments directly through banks and encourage cashless transactions.
What are the features of BHIM?
■ The application supports all Indian banks which use UPI, which is built over the Immediate Payment Service (IMPS) infrastructure and allows the user to instantly transfer money between member banks of any two parties.
■ It can be used on all mobile devices
■ BHIM allows users to send or receive money to or from UPI payment addresses, or to non-UPI based accounts (by scanning a QR code with account number and IFS code or MMID code).
■ Unlike mobile wallets (Paytm, MobiKwik, M-Pesa, Airtel Money, etc.) which hold money,the BHIM app is only a mechanism which transfers money between different bank accounts.
■ Transactions on BHIM are nearly instantaneous and can be done at any time, including weekends and bank holidays.
■ BHIM now also allows users to send or receive digital payments through Aadhaar authentication.
What are the three levels of authentication in BHIM apps?
The BHIM apps 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.
Thus there are three factors of authentication versus a normal net banking app or a chippin debit card which will only have two factors of authentication.
Further, the UPI pin, which a user creates with their bank account is needed to go through with the transaction.
PRACTICE QUESTIONS
QUES . With reference to digital payments, consider the following statements: UPSC 2018
1 . BHIM app allows the user to transfer money to anyone with a UPI-enabled bank account.
2 . While a chip-pin debit card has four factors authentication, BHIM app has only two factors of authentication.
Which of the statements given above is/are correct?
(a) 1 only
(b) 2 only
(c) Both 1 and 2
(d) Neither 1 nor 2
(a)
