The BHIM app is a digital payment application developed by the National Payments Corp. of India (NPCI) as Unified Payments Interface (UPI) technology, launched in India in April 2016 by Prime Minister Narendra Modi to facilitate digital transaction/ payments. For using BHIM (Bharat Interface for Money) UPI on Paytm platform, users need to create their own Paytm BHIM UPI ID on the app (Paytm BHIM UPI ID on the app will be your mobile-number@paytm by default), which will be issued by Paytm Payments Bank. Paytm users can link any of their savings bank account with this unique Paytm BHIM UPI ID and start sending and accepting money.
With Paytm BHIM UPI, users can now make seamless and instant money transfers. According to Paytm, with these new feature users won’t have to wait to add the beneficiary or put in the IFSC code to receive money. Users will be able to make seamless and instant money transfers directly between two bank accounts, with no waiting time to add a beneficiary. You would not need your bank details or IFSC code to receive money as well. This will enable a larger pool of Paytm users to transact digitally with more choices, greater ease and convenience. The Paytm merchants can also link their multiple existing bank accounts with Paytm BHIM UPI ID to accept money. It allows users to transact from accounts in various banks through one single app, even offering the possibility to shop in retail stores aimed at making it easier for smartphone and feature phone users to carry out cashless payments. It is different from similar apps like Paytm and MobiKwik, as it links directly to your bank account, while the latter are digital wallets that require you to transfer money to them.
BHIM’s UPI system uses IMPS (Immediate Payment Service). It is an instant real-time inter-bank electronic funds transfer system in India. IMPS offer an inter-bank electronic fund transfer service through mobile phones. Unlike NEFT and RTGS, the service is available 24/7 throughout the year including bank holidays.
How to do it?
When you download the app,you’ll be asked to verify your mobile number that’s linked to a bank account registered and linked with your aadhar card. Users with dual- SIM smartphones need to have their bank-registered SIM card in the SIM 1 slot for this to work. Once verified, the app will present you with a list of your bank accounts linked to that mobile number, and you can select the options you want to use. Once complete, you’ll be asked to enter a UPI pin, a 4-digit security code that you will use for all further transactions through the app. Once you set this up, you will see three options to ‘Send’, ‘Request’, and ‘Scan and Pay’. Both the Send and Request options require you to enter the payment address of the receiver or sender respectively. If you wish to use a different device to transact using BHIM UPI, you will need to complete the mobile number verification process that will be prompted on app. Your new device should have the SIM card of the mobile number with which you are registered on Paytm and will verify the mobile number and device used to register for BHIM UPI on Paytm first.
The list of banks supported by the BHIM app includes: Allahabad Bank, Andhra Bank, Axis Bank, Bank of Baroda, Bank of India, 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, Indus Ind 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. The limit is now revised to Rs.1 lakh per day.
As per the NPCI guidelines it is worth adding that users get the limit of sending up to Rs.1 lakh per day using BHIM UPI ID and there is no limit imposed on receiving the amount of money. Paytm merchants can also link their multiple existing bank accounts with it to accept money. Paytm will also be training its five million merchant partners, to create their Paytm BHIM UPI ID and accept money using the same. erchants will also get the flexibility of adding multiple bank accounts with the single Paytm BHIM UPI ID and accept money directly into their bank accounts.
Paytm says that the feature is currently being tested in beta inside the Android app. iOS version of the app will get BHIM UPI support soon.