• 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.