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From UPSC perspective, the following things are important :
Prelims level: BHIM 3.0
Why in the News?
NPCI BHIM Services Ltd. (NBSL), a subsidiary of the National Payments Corporation of India (NPCI), launched BHIM 3.0 with new features aimed at enhancing the user experience and providing new offerings for businesses and banks.
About BHIM (Bharat Interface for Money):
- BHIM is a mobile payment app developed by NPCI, based on the Unified Payments Interface (UPI), aimed at promoting cashless transactions and digital payments directly through banks.
- Launched on December 30, 2016, BHIM facilitates instant money transfers between over 170 member banks using IMPS infrastructure.
- Unlike mobile wallets, BHIM transfers money directly between bank accounts, ensuring quick transactions at any time, including holidays.
- BHIM now supports Aadhaar-based authentication for easier digital payments.
- BHIM is available in more than 20 Indian languages and is designed to work effectively in areas with low or unstable internet connectivity.
- BHIM employs a robust three-factor authentication (3FA) process to ensure the security of transactions:
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- Device ID and Mobile Number: The app binds with the user’s device ID and mobile number to verify the device.
- Bank Account Link: Users must sync their bank account (UPI-enabled or non-UPI-enabled) to the app for transactions.
- UPI PIN: A unique UPI PIN is required for completing transactions, which adds an extra layer of security.
- NPCI does not charge any fee for transactions between ₹1 and ₹100,000.
- Banks may charge fees for UPI or IMPS transfers, but there is no official information on BHIM-specific charges.
Key Features of BHIM 3.0
- Split Expenses: Users can now divide bills for shared expenses (e.g., rent, dining, group purchases) and settle payments instantly.
- Family Mode: Users can onboard family members, track shared expenses, and assign specific payments for better financial management.
- Spends Analytics: A new dashboard provides a detailed breakdown of monthly expenses, automatically categorizing them for easier budgeting.
- Action Needed Alerts: BHIM 3.0 includes reminders for pending bills, activation of UPI Lite, and low Lite balance alerts to help users stay updated.
- BHIM Vega: This feature allows merchants to accept in-app payments directly within the BHIM app, streamlining transactions without needing third-party apps.
| [UPSC 2018] With reference to digital payments, consider the following statements:
1.BHIM app allows the user to transfer money to anyone with a UPI-enabled bank account. 2. While a chip-pin debit card has four factors of authentication, BHIM app has only two factors of authentication. Which of the statements given above is/are correct? (a) 1 only (b) 2 only (c) Both 1 and 2 (d) Neither 1 nor 2 |
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