BHIM Aadhaar App: Recently, the National Payments Corporation of India had announced the launch of a mobile application named BHIM Aadhaar App for Aadhaar-based payments through Bharat Interface for Money (BHIM) app for merchants.
What is BHIM Aadhaar App
The BHIM Aadhaar App service was launched by Prime Minister Narendra Modi in Nagpur. The new service will allow customers to make purchases using their Aadhaar number linked with their bank account. BHIM Aadhaar would be applicable for retail merchants only and not for corporate merchants, said by government officials. BHIM Aadhar Pay smartphone payment app would also eliminate the fee currently being charged by the private card companies such as ‘MasterCard’ and ‘Visa’.
- Customers do not need a debit card or credit card for payments through Aadhaar Pay
- Aadhar Pay would end the need to have an internet connection, many payment apps, or POS machines
- Aadhaar Pay would not charge Merchant Discount Rate (MDR). (MDR is the charge paid by the merchants to a bank merchant for accepting digital transactions through credit or debit cards)
BHIM Aadhar Pay app is expected to revolutionize the whole payment system in India. To make payments using the BHIM Aadhar Pay app, customers would not require downloading any app or even a mobile phone. The transactions would be authenticated using their fingerprint which is saved in the Aadhar database. Merchants can download the app from play store or iTunes.
Details of UPI
- The National Payment Corporation of India launched Unified Payment Interface which allows payments and money transfers using mobile phones
- Using Procedure and Working Procedure of the App
- Merchants can download the app from play store or iTunes
- After that, they can log in with their Aadhaar number using the fingerprint scanner. Once the app is validated, merchants can use it to take payments.
- While accepting payments, merchants would enter the Aadhar number of the customer, select the bank and enter the amount to be charged
- After that, customer would place his finger/thumb on the fingerprint scanner to authorize the payment
- Once the fingerprint matches with the Aadhar Database, the amount will directly be transferred from customer’s account to merchant’s bank account
Using BHIM Aadhar Pay app, transactions can be made through Aadhaar-linked bank accounts (AEBA) only. BHIM Aadhar is a highly secure app which will use two main platforms – Aadhaar Payment Bridge (APB) and Aadhaar Enabled Payment System (AEPS). APB will act as repository between the banks and the customers to provide a smooth flow of transactions, while AEPS will help in authenticating the online process.
List of Public Sector Banks and Private Banks under Aadhaar Payment
Allahabad Bank, Andhra Bank, Axis Bank, Bank of Baroda, Bank of India, Canara Bank, Central Bank of India, City Union Bank (Issuer), Corporation Bank, Dena Bank, Federal Bank (ONUS), HDFC Bank, ICICI Bank, IDFC Bank, Indian Bank, IndusInd Bank (Acquirer), Indian Overseas Bank, Oriental Bank of Commerce, Punjab National Bank, Punjab & Sind Bank, State Bank of India, South Indian Bank (Issuer), Syndicate Bank, UCO Bank, Union Bank of India, United Bank of India and Vijaya Bank.
Requirement for the App
The Adhaar payment app does not require any gazette and physical things from the customer. However, a customer should remember his/ her Aadhaar number and keep its finger clean. That is enough from customer’s side.
- Your Aadhaar number
- A bank account linked with Aadhaar
- Clean Fingers
On the other hand, the merchant has to make more arrangements. These are the requirement for the person who wants payment.
- Reliable Internet connection
- Aadhaar Payment App
- Fingerprint scanner
- Bank account
According to the government officials, almost 40 crore Aadhaar numbers have already linked to bank accounts. The number is equivalent to the half of the adults in India. The motto of the government is to link all bank accounts with Aadhaar by March 2017. If it goes well, the India will see a boom towards a cashless economy.