BHIM App | Aadhar based Mobile Payment App | Features, Details & Benefits

Prime Minister Shri Narendra Modi today (30th December, 2016) has launched an Aadhaar based mobile payment application called BHIM (Bharat Interface for Money) – a modified version of UPI (Unified Payment Interface) and USSD (Unstructured Supplementary Service Data), at the Digi Dhan Mela event in Talkatora stadium in New Delhi.

BHIM is a real-time cashless transaction platform wherein the payments can be made through use of bio-metric finger prints. The payments done through this app is expected to start over the next 2 weeks. As of now, the new APP can be downloaded from Android app store.

This latest app has been named in the honor of Bhimrao Ambedkar (Dr Babasaheb Ambedkar), the man who gave Indian Constitution.

What is BHIM App?

BHIM is a mobile based application interface to send or receive money. One can also make digital payments (e-payments) through this app. You have to register your bank account to the app and set a UPI PIN. Your mobile number will then be your payment address and you can perform financial transactions using the app. You can also check balance or scan a QR code to make a payment.

As of now, the maximum amount that can be transacted is Rs 10,000 per transaction and Rs 20,000 in a day.

BHIM APP Aadhar based mobile application Modi Govt cashless payment download APP

How BHIM App works at Retail Outlets?

  • The shop-keepers (merchants) need to download the Aadhar based cashless merchant app (BHIM) on their smartphones.
  • The smartphone has to be connected to biometric reader (cost of biometric reader is around Rs 2,000)
  • The customer will then feed his or her Aadhar number into the app.
  • He/she then has to select the bank through which the transaction can be done.
  • The customer has to scan his/her thumb impression, which is authenticated by the biometric reader. (Almost 40 crore Aadhaar numbers already stand linked to bank accounts – that is half the adults in India. )

Benefits of BHIM App

  •  BHIM app can be used on any smartphone even without the internet (one time download is required).
  • There is no need for a buyer/customer to have a mobile phone. It is a very simple application and your (customer) fingerprint is enough.
  • This app can eliminate the requirement of PoS (Point of Sale) terminals.
  • No bank and merchant transaction fee is applicable. (Generally 1 to 3% charges are levied on the transactions by Card companies like Visa or Mastercard).
  • You can also use BHIM interface to transfer money. It lets you make easy and quick payment transactions using UPI. You can easily make direct bank to bank payments and instantly collect money using just Mobile number or Payment address.

Which banks support the BHIM app?

Following are the banks that support the BHIM app. The list is as released by the government:

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, IndusInd 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, Vijaya Bank.


Kindly click on the below image to go through the list of FAQs on BHIM app.

FAQs on BHIM APP pic

Kindly note that this post is based on limited available information, more details will be updated soon….

(Image courtesy of stockimages at (Post published on 30-December-2016)

  • Niranjan Jadhavrao says:

    Shrikant sir ,
    Please elaborate the basic economic concepts in layman terms which would be helpful for us to study for our UPSC preparation…a very kind request.
    Thanking you ?

  • David says:

    Let’s check the mobile App…

  • B madan Mohan says:

    Hi Srikanth ji from where I have to buy the Bio metric machine for BHIM app ,for a reasonable price.

    • Sreekanth Reddy says:

      Dear Madan..Finger-print readers are available onlne @ Amazon. You may check them..

  • RAJ says:

    Dear Sreekanth,
    Wishing You and Your family and a VERY HAPPY AND PROSPEROUS NEW YEAR


  • Prakash says:

    Hi Srikanth Sir, my father created a NSC worth 38000/- in his and my name jointly (his name first), maturing this January. He deceased 4 year ago. NSC certificates and his death certificate is enough to claim the money? How is tax implications of the same on me? How will post office pay me the money,cash or cheque?

    • Sreekanth Reddy says:

      Dear Prakash,
      They pay you by issuing a Cheque. Original certificate, your father’s death cert, your ID proof copy and a self-written letter to claim the NSC amount is enough.
      As you are a second holder, it is tax-free amount for you.

      • Prakash says:

        Dear Sree Sir, thanks for the answer. How can I show this amount tax free? While filing ITR1, which field/category/section do i show this amount to make it tax free? I use cleartax website for ITR.

        • Dear Prakash ..You can declare this income under ‘Exempt income’ section of ITR.

          • Prakash says:

            Dear Sree Sir, thanks for the answer. I’ve one confusion, my father created the NSC jointly with me. His name first, my name second. Having our joint photo on the NSC. Is the income completely tax free for me, as it was created jointly ?

            I mean say NSC value was 10k, and after maturity the maturity amount is 20k (which I got cheque for), is complete 20k amount is tax free for me?

          • Dear Prakash ..I believe that it is tax-free for you.

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