BHIM (Bharat Interface for Money) is a digital payments solution app based on Unified Payments Interface (UPI) from the National Payments Corporation of India (NPCI). BHIM is just like a cover what is inside is the UPI’s fabulous payment mechanism.
What makes BHIM important?
There are different digital wallets like Paytm, which are basically prepaid wallets that require to transfer money from your bank account to the prepaid wallet. But in the case of BHIM (UPI), there is no such money transfer, no recharge as the money is stored with the bank. This type of arrangement became possible as both UPI and BHIM are sponsored by NPCI which is an offspring of RBI. The trust factor is big and the banks are ready to join UPI because of the ‘government factor’. The authorization of the transaction under BHIM will be done by the banks themselves (mechanically) as money used under BHIM are with the bank accounts. The authentication (executing the payment) should be done by the customer through his mobile phone.
