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BHIM 2.0

Topics Covered:

  1. Indian Economy and issues relating to planning, mobilization of resources, growth, development and employment.


BHIM 2.0


What to study?

For Prelims: About UPI, BHIM and NPCI.

For Mains: Cashless economy- need, significance, challenges and role of BHIM in furthering this.


Context: Govt launches BHIM 2.0 with new functionalities, additional language support.


What is BHIM?

Bharat Interface for Money (BHIM) is a UPI based payment interface.

Developed by National Payments Corporation of India (NPCI).

Allows real time fund transfer.

Launched in December, 2016.


What’s new in BHIM 2.0?

  • Donation’ gateway, increased transaction limits for high value transactions, linking multiple bank accounts, offers from merchants, option of applying in IPO, gifting money.
  • It also supports three additional languages — Konkani, Bhojpuri and Haryanvi — over and above the existing 13.


What is UPI?

Unified Payments Interface (UPI) is a system that powers multiple bank accounts into a single mobile application (of any participating bank), merging several banking features, seamless fund routing & merchant payments into one hood. It also caters to the “Peer to Peer” collect request which can be scheduled and paid as per requirement and convenience. Each Bank provides its own UPI App for Android, Windows and iOS mobile platform(s).


About NPCI:

NPCI is an umbrella organisation for operating retail payments and settlement systems in India.

  • It is an initiative of Reserve Bank of India (RBI) and Indian Banks’ Association (IBA) under the provisions of the Payment and Settlement Systems Act, 2007, for creating a robust Payment and Settlement Infrastructure in India.
  • It has been incorporated as a not for profit company.
  • In 2016 the shareholding was broad-based to 56 member banks to include more banks representing all sectors.


Sources: pib.