How to make and receive payments digitally using Modi's BHIM app

No need for a mobile banking-enabled account to use BHIM; just register your cell no with your bank

Prime Minister Narendra Modi on Friday launched BHIM mobile application to promote and make digital transactions easier. BHIM, which stands from Bharat Interface for Money, lets one make quick payments using a Unified Payment Interface (UPI). 

All payments made using BHIM are linked to one's bank account and a payment can be transacted within a few seconds. One can easily make direct bank-to-bank payments and instantly collect money simply using one's mobile number or payment address.

The BHIM app itself won't charge you for transactions on its platform, but yourbank might levy a nominal amount as UPI or IMPS transfer fee.

The app is currently available on Android (Version 8 and above) and iOS mobiles (Version 5 and above). It will soon be available on other platforms as well.

One needs to have a smartphone, internet access, an Indian bank account that supports UPI payments and mobile number linked to the bank account, in order to use BHIM. One can also link one's bank account to UPI through the app.

You needn't have a mobile banking-enabled account in order to use BHIM. Simply register your mobile number with your bank, and you're good to go.

To enable transfers directly using bank account, your bank will need to be live on the UPI platform. All banks that are currently live on UPI have been listed in the BHIM.

Currently, BHIM supports linking of one bank only. At the time of account set-up, one can link one's preferred bank account as the default account. Any money transferred to anyone using mobile number or payment address will be credited into the default account.

The mobile number registered with the bank account and BHIM have to be same. It is a banking network (UPI) requirement. The mobile number registered with BHIM is used to match the bank accounts linked to it.

Sending, receiving money

One will be able to send money using the BHIM app from UPI-enabled bank accounts. One will need to register and set a UPI PIN using the debit card details linked to the bank account. If the beneficiary's bank account is also linked to UPI, then simply use their mobile mobile number or payment address to transfer. If not, then use IFSC code, bank account or MMID, mobile number to send money.

All payments are instant and 24x7, and even if the person is not registered on BHIM, payment can be made via IFSC, account number or MMID, mobile number.

Once a transaction is completed, one would see a success status on the BHIM screen and receive an SMS from the bank. In some cases, due to operational issues it may take a little longer. 

Several transactions can be executed using BHIM. These include request or send money via payment address, send money to Aadhaar mumber, request or send money to mobile number, send money through MMID, mobile number, send money through IFSC code, account number, use the scan and pay option for merchant payments.