What is BHIM Payment App and how does it work?

What-is-BHIM-App-and-how-does-it-work-minWhat is BHIM Payment App and how does it work?

To encourage cashless economy and making digital payment a habit, Prime Minister Mr. Narendra Modi launched a mobile application for Unified Interface Payment (UPI) called as Bharat Interface for Mobile (BHIM) in Dec-2016. This application can be used commonly across all banks and financial institutions on click of button. What is BHIM App? How does BHIM App work exactly? How to install BHIM App? How to setup UPI PIN on BHIM Application? Is it safe to use BHIM App? In this article, I would try to answer most of the common questions and provide BHIM App details.

Also Read: How does Paytm Payment App work?

Overview about BHIM UPI based Payment App

The basic idea for launching this app is to promote all the business transactions through it that were taking place by way of notes and coins beforehand. This app does not even require internet connection as it can also work on simple featured phone. To add more, Aadhar-based payment system would be added to the app in the next few weeks. After that, even mobile phone and internet will not be required as only thumb impression would do the necessary.

The common UPI based BHIM app will enable people to send and receive money through their mobile phones by linking their bank accounts and getting an UPI PIN number. For the featured phone holders, the app will work through an upgraded USSD (Unstructured Supplementary Service Data) platform. The banks that currently have individual UPI apps can either endorse the common BHIM app or only forbid their customers to use the in-house app which may be equipped with more features.

BHIM App Features

Here are the main features of BHIM App.

  • The BHIM app IOS comes with basic feature such as receiving and sending money.
  • It will even allow you to transfer money to non-UPI accounts or addresses.
  • One can also send money via IFSC and MMID code to users, who don’t have UPI based bank account.
  • The app has the ability of linking accounts, recording beneficiary details, saving profile of the user, and providing balance enquiry.
  • It is unlike a mobile wallet like Paytm or Mobikwik which stores a limited amount of money and transfers only to one who holds the same wallet.
  • Any person to whom you are trying to pay through BHIM need not have the same app. He just needs a bank account to get the money transferred.

How to download and install BHIM App?

  • BHIM Apps Download from google play store here.
  • The App is now compatible for iphone too as per latest update received 2 weeks back
  • Bhim App free download and no charges.
  • Choose desired language. It supports English, Hindi etc., upto 7 languages.
  • Click on lets get started and click on allow permissions
  • Verify your mobile no. You would get SMS on your mobile for verification.
  • Register for 4 digit passcode. This is your passcode which you need to enter while login every time you open your App.
  • Select the bank from the available list.
  • Account no. would be displayed which is already registered with your mobile no.
  • Select the bank account
  • Your installation is complete. You can start using BHIM app now.

How to send money using BHIM App?

  • Open BHIM App
  • Click on SEND money
  • Enter UPI address
  • Submit.

How to setup UPI Pin in BHIM?

  • Open the BHIM app by entering the 4 digit passcode.
  • Go to the Bank account.
  • Tap on the ‘Reset UPI PIN’. This link would be present just after your bank account details.
  • Enter the last 6 digits of your debit card. Choose debit card of the bank what you choose.
  • Enter the validity of the card.
  • You would receive OTP.
  • Enter this OTP and submit
  • Now you can set your new UPI PIN. This UPI pin would be of 4 digits. It is just like the ATM PIN.
  • This 4 digit pin is different from 4 digit PIN what you are using while opening BHIM App.
  • BHIM APP Customer Care Number is +91 22 4000 9100

How does BHIM App work exactly?

Let me go little deep dive on how BHIM App would work exactly.

  • BHIM is based on UPI i.e. Universal Payment Interface and linked directly to bank accounts. If both the concerned parties have UPI active, then you just need to ask the VPA (Virtual Payment Address). For example- If I have a VPA at SBI which could be abcde@SBI, then I just need to share this piece of information to the other person and he/she can transfer it straight from BHIM. Else one can use the option of IFSC code or MMID for sending or receiving money. There is no need to remember the bank account number or share it with anybody. The VPA is all one need to share.
  • Multiple accounts can be attached to BHIM. While operating, the app asks your preferred bank account after it has verified your mobile number. The app sends a SMS via the SIM in your phone. So, it is best to have the same mobile number to which your bank account is linked. The app will then ask you to set a four digit pass code. We need this code every time we wish to use the app and to authenticate the transaction. Once this pass code is set, the app will ask you to select a bank account. If UPI is activated, it will show the relevant account number and you will be able to choose an option of sending money, receiving money or share via IFSC code.
  • If UPI is not activated, one has to put in six digits of the debit card and the expiry date. You then create a UPI pin. Once done, the app will allow you to perform the requisite functions.
  • Then, just click on send money. Type the mobile number or bank VPA address. It will also verify the user to whom the money is being sent. Type the amount to be transacted and press pay. You are also required to enter the UPI pin to authenticate the transaction.
  • If the other party doesn’t have UPI, three dots will appear on the top of the send money option, click on the dots and the account and IFSC window will open up. Put in the details and your transaction will be completed.

How Safe is Bhim App?

  • The BHIM app has three levels of authentication.
  • App binds with a device’s ID and mobile number.
  • Second a user needs to sync whichever bank account (UPI or non-UPI enabled) in order to the conduct transaction.
  • Third, when a user sets up the app they are asked to create a pin which is needed to log into the app.
  • Further, the UPI pin, which a user creates with their bank account is needed to go through with the transaction.
  • Even if your mobile phone is stolen, one need to know UPI Pin to transact.

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Drawbacks of the BHIM App

  • Not every mobile phone user possess smart phone and even smart phone users face the problem of poor internet connectivity. From the infrastructure point of view, there is still a long way to go to make BHIM the default app for making digital payments.
  • The system is workable only in the android users which mean a large part of Apple / IOS users are out of this system, which consists of considerable technology users. Probably, they will be using other applications to make digital payments.

Conclusion: The concept of BHIM is definitely a great idea. It still has teething issues as some users complain that transactions are slow due to server load. This is a good App. One can definitely try such Apps.

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What is BHIM Payment App and how does it work

Suresh KP


  1. Can credit card be used in transferring money thru BHIM UPI? If yes, Pls. advise the procedure.  

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