Aadhaar payment app will boost digital payments revolution: PM Modi

Trevor Jackson
April 16, 2017

In the kharif season starting June, farmers in Gujarat, Maharashtra, Madhya Pradesh, among others States, can make cashless purchases of fertilisers through the BHIM-Aadhaar Pay digital payments platform launched in Nagpur on Friday by Prime Minister Narendra Modi.

Speaking on the occasion, Narendra Modi said he was delighted to be in Nagpur on the occasion of Ambedkar Jayanti. "A day is not far when banks have no premises or paper".

Joining the culmination of the DigiDhan Mela, Modi presented awards to the mega draw winners of Lucky Grahak Yojna and DigiDhan Vyapar Yojna.

Notably, the PM had recently expressed gratitude to the people saying over the last few months the country had witnessed an atmosphere in which people in large numbers participated in the digital payment, the "Digidhan" movement.

"Let us strive to live the dreams of Dr. Ambedkar which he enshrined in the Constitution", the Prime Minister said.

But the Android and iOS versions of Bhim, which stands for Bharat Interface for Money, ran into two roadblocks - many Indians don't have smartphones and those who have phones can not afford data connections. It is not necessary to have the internet for this app.

BHIM Aadhaar is the merchant interface of the BHIM app that was launched in December past year to enable fast and secure cashless payments through one's smartphone.

Twenty seven major banks, along with 715,000 merchants are on board the platform.

Modi also launched two incentive schemes for the Bhim app - cashback and referral bonus - with an outlay of Rs 495 crore for six months. He said for every person you introduce to the BHIM app, you will get a cash back of Rs 10.

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In addition, Aadhaar has allowed thousands of poor Indians to access social schemes, open bank accounts and directly get funds through their bank accounts, instead of going through middlemen and government employees. The schemes will start from 14 April and end on 14 October, he added.

Similarly, under the Cashback scheme, the merchants will get a cashback of Rs 25 on every transaction using BHIM.

With BHIM app, people will be able to make payment even without using a smartphone. It will especially benefit those who do not have debit cards, mobile wallets and mobile phones.

The app also dismisses the need to pay Merchant Discount Rate (MDR) to receive transactions.

The amount is transferred from customers' aadhaar-linked bank account to merchants' aadhaar-linked bank account.

Merchant asks the customer to authorise the payment by placing his/her finger on the bio-metric scanner connected to merchant's smartphone.

The lack of connectivity has also made it hard for the merchants in the country to adopt digital payment systems. The Aadhaar Pay app is available on both Google Play store and Apple's app store.

Based on a biometric platform, any Aadhaar card holder can now pay to any merchant using his thumb impressions.

Other reports by TheDailyFarc

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