Indian PM introduces bank-linked mobile-payments app
India's Prime Minister Narendra Modi has launched a new mobile payments app that he said will "empower the poorest of the poor" as the country is urged to embrace a cashless economy. The Bharat Interface for Mobile (BHIM) will be accepted by all banks and financial institutions on the the Unified Payment Interface (UPI), and does not require an internet connection. During a speech in New Delhi, Modi said the BHIM app, currently being security tested, was "for the small merchant, farmers in far-flung areas".
NEW DELHI: Urging people to make digital payments a "habit" to make the country a cashless economy, Prime Minister Narendra Modi on Friday launched a mobile app for the Unified Payment Interface (UPI). The application, which will be common across all banks and financial institutions, is called BHIM (Bharat Interface for Mobile).In his 40-minute speech at Talkatora Stadium in New Delhi during the inauguration of the DigiDhan Mela, Modi time and again evoked Dr Bhim Rao Ambedkar -- father of the Indian Constitution – and drew parallels between his contribution towards the upliftment of the downtrodden and the idea behind the BHIM mobile app."Right now, business happens by the way of [currency] notes and coins. That day is not far when all business transactions will be conducted through the BHIM app," the prime minister said in Hindi.The central banking system was born out of a thesis written by Dr Ambedkar and the federal structural of independent India, the economic structure between states and the Centre and idea of the finance commission were all a result of Ambedkar’s imagination, Modi said.The BHIM app will empower the poorest of the poor, he said. "It is for the small merchant, farmers in far-flung areas, tribals. That’s why its name has been borrowed from the man who sacrificed his life for the downtrodden," the prime minister said.Adding that the BHIM app doesn’t even require an Internet connection since it can also work on simple feature phones, Modi said Aadhaar-based payments system would be added to the app in the next two weeks. "Currently, it is being security checked. After it is launched, BHIM will not need a mobile phone, internet or even a feature phone. It will only need your thumb (impression)."He said the country already had more than 100 crore Aadhaar holders with most of the adult population covered.There was a time, he said, when illiterate people were called "angootha chap". But now, the thump impression would make way for a person’s bank, identity and even business, he said. "After two weeks, when the new (Aadhaar-based) system will be launched, BHIM will be the biggest wonder of the world," Modi said.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 a UPI PIN number. The app will also work on feature phones through an upgraded USSD (Unstructured Supplementary Service Data) platform.ET had reported on December 28 that the Centre planned to launch a stripped-down version of the UPI app to make it easier for people to transact digitally -- either with or without an internet connection since the app would be linked to the USSD platform that was being upgraded for easier functioning.The BHIM app comes with basic features such as the ability to send or receive money, linking of accounts, saving profile of the user, changing the language, recording beneficiary details and providing balance enquiry.Banks that currently have individual UPI apps can either endorse the common BHIM app or only allow their customers to use the in-house app which may be loaded with more features, National Payments Corporation of India managing director AP Hota had told ET recently.Union minister for IT and law Ravi Shankar Prasad said at the launch that after the government announced demonetisation on November 8, the growth in digital payments has accelerated from 400 per cent to 2000 per cent. "After the Aadhaar-enabled payment is launched, through the combination of Aadhaar, mobile and Internet, the country will be transformed," Prasad said.Once people start using digital payments for everyday transactions, small merchants and micro merchants and even people who provide services such as washing and ironing clothes will be able to get soft loans from banks due to their transaction history, which will be now available, weaning them away from usury, Modi said.Towards the end of his speech, interspersed with digs at the opposition and the previous UPA government, the prime minister urged people to embark on digital transactions starting January 1. "Even if you do five transactions, cashless payments will become a habit and the country will lead in the digital movement," he said.