What Is the Difference Between BHIM and UPI?
A lot of people often use BHIM and UPIinterchangeably in casual conversation. More often than not, no one pays attention to this. However, while these two words are related from a "payment" perspective, they are in fact two entirely different things.
If you are someone who raises an eyebrow every time you hear this, but didn't get the time to follow up and clarify this yourself. This post is for you. It will break down the differences between BHIM and UPI, clearing up any confusion you have on the topic once and for all
What Is UPI?
UPI, or Unified Payments Interface, is a new kind of digital payment system. Its main goal is to make digital payments super easy for anyone with a bank account and a smartphone. It’s all part of a bigger vision to help India move towards a cashless economy.
UPI is built on the Immediate Payment Service (IMPS) framework. That said, it's a much simpler system. Instead of having to enter everything like payee names, account numbers, and IFSC codes, you just need to enter a single Virtual Payment Address (VPA) to send money.
And the best part? Just like IMPS, UPI allows for instant payments, 24/7. So whether it’s day or night, your money can move as quickly as you need it to!
What Is BHIM?
BHIM, which stands for Bharat Interface for Money, is an app that uses the technology discussed above to make payments. It was launched around the same time as UPI, in 2016. The idea was for it to serve as the proof of concept of UPI.
Note - Both UPI and BHIM are developed by the National Payments Corporation of India (NPCI).
Here is a brief comparison of the two -
| Aspect | UPI | BHIM |
|---|---|---|
| What is it? | A technology that enables instant digital payments | An app that enables users to make payments using UPI |
| Transaction Options | Supports sending and receiving funds via VPA and QR codes. | Provides an interface to do transactions (P2P, Merchant payments, and pay bills) using UPI |
| Language support | Depends on the UPI app | BHIM supports 20 Indian languages |
| Transaction Limits | Varies based on the app. NPCI sets the limit at ₹1 lakh per day, but banks can impose individual limits | Follows the ₹1 lakh per day limit set by NPCI |
| Security and Regulatory Oversight | NPCI-mandated standards for all apps | NPCI-mandated standards |
Why Pick BHIM Over Other UPI Apps?
While there are several third-party and UPI-enabled Banking apps to choose from, BHIM is the best choice as -
- It's the simplest UPI app out there, which only includes core UPI features, making it great for first-time users.
- It does not run ads, so it does not have any tracking features embedded in it.
Nonetheless, BHIM also has its limitations when compared to other UPI apps available to users.
- Does not include additional features like bill payments, investments, and cashback and rewards. It's a bare-bones UPI app
- Slower customer support as it primarily relies on NPCI's helplines
Clarifying One Last Time
The difference between UPI and BHIM is simple: one is a technology, and the other is an app that uses this technology. For anyone needing a simple app to make UPI payments, nothing beats BHIM. If you want one that can do a lot more, there are plenty to choose from. The best part - you can install all of them and use whichever one you want when.
Need quick funds in an emergency? Hero FinCorp has your back. You can apply for one via the Personal Loan App and get the funds into your account in no time.
Frequently Asked Questions
Is there any difference in safety when you compare BHIM to other apps?
Every UPI app in India has to meet the same security standards set by the NPCI. So, as far as safety goes, they are all the same.
Can I link multiple bank accounts with both UPI and BHIM?
Absolutely! You can link multiple bank accounts to BHIM, as well as to other third-party UPI apps that use the UPI interface. It’s super convenient!
Are transactions free on BHIM and other UPI apps?
Every transaction on BHIM and all other UPI apps is completely free. No hidden fees here!
Can BHIM be used for merchant payments or just person-to-person transfers?
BHIM is versatile and supports both types of UPI payments.
What are the daily and per-transaction limits on BHIM and UPI?
The NPCI has set a limit of ₹1 lakh per transaction for UPI, and BHIM follows that same guideline.
Disclaimer: The information provided in this is for informational purposes only. While we strive to present accurate and updated content, travel conditions, weather, places to visit, itineraries, budgets, and transportation options can change. Readers are encouraged to verify details from reliable sources before making travel decisions. We do not take responsibility for any inconvenience, loss, injury, or damage that may arise from using the information shared in this blog. Travel involves inherent risks, and readers should exercise their judgment and caution when implementing recommendations.