To boost the cashless transactions across the country after demonetisation, over 30 banks have, so far, launched their Unified Payments Interface (UPI)-enabled mobile applications. UPI, a payments system, was first announced in April 2016 by the National Payments Corporation of India (NPCI) along with the Reserve Bank of India (RBI).
While mobile wallet companies such as Paytm and MobiKwik cashed in on demonetisation,
UPI did not that get that much of a push. Now the government has introduced a unified app for UPI called BHIM, which will let users transfer money to anyone with a UPI-enabled bank account, or even a regular bank account through IFSC code.
The BHIM apps has three levels of authentication. For one, the 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.