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BHIM app and the money transfer service it offers has been popular recently. You must have done a few BHIM transactions as well. But, how much do you know about the app and its various features and limitations?

1. What does BHIM mean?

Bharat Interface for Money (BHIM) is a payments app that facilitates simple and quick transactions using Unified Payments Interface. It allows you to make direct bank payments to any bank account on UPI with the help of UPI ID and PIN. In another case, you can scan a QR code with the BHIM app to transfer money. One can also request money through the app.

The app was developed by National Payments Corporation of India (NPCI). It was launched by the Prime Minister of India, Narendra Modi on 30 December 2016 to realise a digitally empowered society.

2. How to use BHIM?

Step 1: Download the app from Google Play Store or Apple App Store and install it on your smartphone.

Step 2: Select your preferred language.

Step 3: Select the sim with the mobile number that is registered with your bank account.

Step 4: Set a 4-digit password to be used as an authentication method. Log in to the app with the set password.

Step 5: Select your bank account and link it to the app.

Step 6: Set your UPI PIN by entering the last 6 digits and the expiry date of your debit card.

Step 7: You are successfully registered with the app.

Step 8: Send or request money on the app now.

3. Features of BHIM app

  • Send Money: Users can send money using Virtual Payment Address (VPA), a combination of Account Number, and IFSC or even by scanning QR code.
  • Request Money: Users can initiate a collect request by entering VPA. In addition, collect request can be sent even if the other party is registered with BHIM. However, it is mandatory that both the parties’ mobile number is linked with the bank account.
  • Scan and Pay: Customers can scan the QR code through the ‘Scan and Pay’ feature to make payments. You can also generate QR code on the app to receive payments.
  • Transactions: Users can check their transaction history in this section. The pending UPI will be highlighted so that you can approve or reject the requests. If you have a complaint pertaining to a transaction, you can report it.
  • Profile: Users can view the static QR code and payment addresses created. The QR code found here can be downloaded as well as shared via various messenger applications such as WhatsApp and email.
  • Bank Account: Users can check the details of the bank account linked with the app with this feature. Customers can set and change the UPI PIN. You can also change the bank account linked with the app by choosing the ‘Change Account’ option. The account balance can also be viewed here.

4. UPI 2.0

  • Linking Overdraft Account on UPI: You can link your over-draft account to UPI so that you can get digital access to the account.
  • Signed Intent and QR: When you attempt to make payment using the intent or QR code, the user will get additional security in the form of signed intent/QR. Tampering the QR and non-verified entities can be reduced with this feature. It lets you be sure of the receiver when making a transaction.
  • Mandate: This feature lets you pre-authorise a transaction to be carried out later, i.e. to debit from your bank account. If a user thinks he may forget to make the payment later, he can schedule the payment for later and authorise the transaction now. This may be suitable in the case of payments for a service or a merchant. The funds from the account will be debited when the mandate is executed. UPI mandate can be made only once.

5. Transaction limit and charges

As per the regulations, you cannot pay beyond Rs.40,000 per transaction. In addition, the daily transaction limit is set to Rs.40,000. However, other UPI apps allow an upper limit of up to Rs.1 lakh.

When it comes to UPI transaction charges, person-to-person (P2P) transactions are free-of-charge. However, there may be transaction charges for the transactions between NPCI and service providers.

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