Commemorating the 126th birth anniversary of Dr Bhim Rao Ambedkar, Prime Minister Narendra Modi today launched in Nagpur several crucial initiatives to further the digital payments revolution in India.
Prime Minister Narendra Modi launched BHIM-Aadhaar platform for merchants to facilitate digital payments and unveil cash back and referral bonus schemes for the BHIM app at Nagpur. These announcements was made by the prime minister at a function on the occasion of 126th birth anniversary of Dr Bhim Rao Ambedkar.
Developed by National Payments Corporation of India (NPCI), the Aadhaar-linked Bharat Interface for Money (BHIM) mobile app is based on the Unified Payment Interface (UPI) and was launched on the 126th birth anniversary of Dr Bhimrao Ambedkar, a PMO release said.
BHIM Aadhaar Pay app is going to make digital payments less complicated and simple. Even for people who can’t use cards or digital wallets due to lower education or illiteracy can be a part of this aadhaar payment system.
The most important aspect of making payments using BHIM Aadhaar pay is that you don’t need any card or smartphone. All you need is your thumb impression. Your thumb is your digital payment system if your bank is linked to your aadhaar.
A statement issued by the NITI Aayog said that the BHIM-Aadhaar (Bharat Interface for Money) merchant interface would pave the way for making digital payments on the Aadhaar platform using biometric data like thumb imprint on a merchant’s biometric enabled device
- The customer purchases any goods/services.
- The merchants calculates the amount to be accepted and inputs the amount in the app.
- The bank name and the aadhaar number of the customer are entered into the app.
- Merchant asks the customer to authorise the payment by placing his/her finger on the bio-metric scanner connected to merchant’s smartphone.
- The amount is transferred from customers’ aadhaar-linked bank account to merchants’ aadhaar-linked bank account.
Already, 27 major banks are now on board this platform with 300,000 merchants to start accepting digital payments.
CEO NITI Aayog Amitabh Kant said that the launch of BHIM-Aadhaar App and the launch of the two schemes – Cash back and referral schemes by the Prime Minister will provide a major impetus to the digital payment revolution in India.
Under the Referral Bonus Scheme, both the existing user who refers BHIM and the new user who adopts it would get a cash bonus credited directly to their accounts.
Under the Cashback scheme, the merchants will get a cashback on every transaction using BHIM.
BHIM App has already created a new world record by registering 1.9 crore downloads in just four months since its launch in December, 2016. India has also seen an unprecedented increase in number of transactions made using several user-friendly digital payment methods.
Until November 2016, the volume of all digital transactions was 2,80,000 which amounted to Rs 101 crore in value terms. By March, the volume of payments using various digital payment modes saw an increase of about 23 times amounting with 63,80,000 digital transactions for a value of Rs 2,425 crore.