Context:

The Ministry of Electronics and Information Technology launched BHIM 2.0.

About:

What is BHIM?

• Bharat Interface for Money (BHIM) is a payment app that lets user make simple, easy and quick transactions using Unified Payments Interface (UPI).
• User can direct bank payments to anyone on UPI using their UPI ID or scanning their QR with the BHIM app.
• One can also request money through the app from a UPI ID.
• Pioneered and developed by National Payments Corporation of India (NPCI), BHIM has been conceived and launched by the Hon'ble Prime Minister of India, Narendra Modi on 30th December 2016 to bring in Financial Inclusion to the nation and a digitally empowered society.

Features of BHIM:

• Send Money: Money can be sent by entering Virtual Payment Address (UPI ID), Account number and QR Scan.
• Request Money: Money can be collected by entering Virtual Payment Address (UPI ID). Additionally through BHIM App, one can also transfer money using Mobile No. (Mobile No should be registered with BHIM or *99# and account should be linked).
• Scan & Pay: Easy payment by scanning the QR code through Scan & Pay.
• Profile: You can view the static QR code and Payment addresses linked to your account. You can also share the QR code through various messenger applications like WhatsApp, Email etc. available on phone and can also download the QR code.
• Bank Account: BHIM provides switching between multiple bank accounts linked with BHIM App.
• Language: Currently BHIM is available in 13 languages, i.e., Hindi, English, Tamil, Telugu, Malayalam, Bengali, Odia, Kannada, Gujarati, Marathi, Assamese and Bengali.

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.

Features and benefits of BHIM 2.0:

• Linking of overdraft account: In addition to current and savings accounts, customers can link their overdraft account to UPI. Customers will be able to transact instantly and all benefits associated with overdraft account shall be made available to the users. UPI 2.0 will serve as an additional digital channel to access the overdraft account.
• Signed intent and QR: With this option, while making payment using the intent or through scanning QR, the user will get additional security in the form of signed QR / intent. With the signed QR, issues related to tampering QR as well as having non-verified entities are reduced.
  
  

  National Payments Corporation of India (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. Considering the utility nature of the objects of NPCI, it has been incorporated as a "Not for Profit Company under the provisions of Section 25 of Companies Act 1956 (now Section 8 of Companies Act 2013), with an intention to provide infrastructure to entire banking system in India for physical as well as electronic payment and settlement systems. The Company is focused on bringing innovations in the retail payment systems through the use of technology for achieving greater efficiency in operations and widening the reach of payment systems.  Promoter Banks: NPCI's ten core promoter banks are State Bank of India, Punjab National Bank, Canara Bank, Bank of Baroda, Union Bank of India, Bank of India, ICICI Bank, HDFC Bank, Citibank N. A. and HSBC. In 2016 the shareholding was broad-based to 56 member banks to include more banks representing all sectors.

• One-time mandate: UPI mandate could be used in a scenario where money is to be transferred later by providing commitment at present. UPI 2.0 mandates are created with one-time block functionality for transactions. Customers can pre-authorise a transaction and pay at a later date. It works seamlessly for merchants as well as for individual users. Mandates can be created and executed instantly. On the date of actual purchase, the amount will be deducted and received by the merchant/individual user.
• BHIM 2.0 supports three additional languages — Konkani, Bhojpuri and Haryanvi — over and above the existing 13