In a bid to promote and make digital transactions easier for citizens of India, Prime Minister Narendra Modi today announced an Aadhaar based mobile payment application called BHIM (Bharat Interface for Money). The app is a rebranded version of UPI (Unified Payment Interface) and USSD (Unstructured Supplementary Service Data).
The new app- 'BHIM' is designed to help common man make online payments that are facing cash crunch every day due to less cash availability post demonetization.
PM Modi during his speech mentioned that the app works on smartphones as well as feature phones. Besides, the app does not require internet connection to make digital transactions.
How to use BHIM App?
1) In order to use the app, merchants need to download the Aadhaar cashless merchant app on their smartphones connected to a biometric reader, which is currently available for Rs 2,000.
2) The customer will then feed his or her Aadhar number into the app, select the bank through which the transaction will take place, and the biometric scan will work as a password for the transaction to be authenticated.
PM Modi also talked about the new scheme- Lucky Grahak Yojana, which enables citizens to win lucky drwas if they make online transactions. He mentioned that a sum of Rs. 340 crore will be distributed as a prize money to citizens of India in the next 100 days who make digital transactions.
The new app is launched under Government of India's 'DigiDhan Abhiyan', which aims to cover two lakh common service centres (CSCs) across rural areas and enable them to become digital financial education centres.
As noted, the CSCs will train people in various digital financial solutions and enable them to use various modes of electronic payment systems (EPS). The campaign also aims to sensitise merchants and vendors on the use of EPS.
The new app- BHIM is governemnt's take on digital transaction apps such as Paytm, MobiKwik, etc. that are currently in use to make digital transactions.