Economy

Aadhaar-based Payments Through BHIM App For Merchants Launched

Aadhaar-based Payments Through BHIM App For Merchants Launched

Launching the BHIM-Aadhar digital platform in Nagpur, PM Modi said it would boost digital payments in a manner unprecedented anywhere in the world and would be a step towards a "less-cash" economy and combat the black money menace.

Earlier in the day, Mr. Modi embarked upon his day-long Nagpur visit from sacred Deekshabhoomi and paid rich tributes to the Architect of Indian Constitution Bharat Ratna Dr. Bhimrao Ambedkar at the Central Memorial on his birth anniversary.

"Any citizen without access to smartphones, internet, debit or credit cards will be able to transact digitally through the Bhim-Aadhaar platform", the government said in a statement.

Delighted to be here on #AmbedkarJayanti.

Aadhaar Pay is an app that needs to be carried by the merchants only.

The 100-day campaign in 100 cities saw over 15,000 institutions going cashless in 27 states and seven union territories and lakhs of people opening new bank accounts and getting new Aadhaar Cards.

From a Merchant's perspective, the app dismisses the need to pay MDR or Merchant Discount rate to receive transactions. "If you don't have a phone you can use your thumb", he said, referring to fingerprint authentication. Under the scheme Rs.258 crore of prize money was won by 16 lakh winners, including customers and merchants belonging to different corners of the country and from varied walks of life. To pay at a store, users would also need to have their Aadhaar number linked to their bank account.

On affordable housing, the prime minister said: "Each and every Indian must have his or her own house".

With a view of achieving the target of 2500 crore digital transactions during the financial year 2017-18, the Prime Minister will also announce about 75 townships spread all over India as "less-cash townships". "They died for the nation but we can live for the nation".

Two new incentive schemes for BHIM will also be launched alongside the BHIM Aadhaar viz Cashback and Referral bonus.

Both schemes shall be administered by the Ministry of Electronics and Information Technology (Meity) and implemented by the National Payments Corporation of India (NPCI).

"If you add a person to BHIM app and he makes three transactions, Rs 10 will be added to your account".

BHIM is a smart mobile phone based app based on Unified Payments Interface (UPI) that allows simple, easy and quick payment transactions using UPI.

More than two months after it demonetised Rs 500 and Rs 1,000 notes, the government is now reportedly pushing to make Aadhaar-enabled payments the norm.

Until November 2016, the volume of all digital transactions was 2,80,000 which amounted to Rs 101 crore in value terms.