IT min orders mobile manufacturers to preload Bhim app

Mobile-handset manufacturers have been asked by the government to preload smartphones with Bharat Interface for Money (Bhim) application, which has been developed by National Payments Corporation of India (NPCI) to drive digital payments across the coun

This was conveyed to mobile manufacturers in a meeting held on Tuesday with senior officials of IT ministry.

The government has been pushing the usage of its Bhim applications for faster adoption of digital payments across the country. Bhim works on United Payments Interface (UPI) platform. Paytm is one of the fastest growing apps in this segment and many banks also have similar apps.

According to a senior official from the ministry, this move, if implemented, is expected to spur the usage of mobile payments ultimately pushing the government's vision of a cashless society.

The ministry of IT and electronics also plans to make Bhim a single point for all mobile payments via Bharat QR code which will be accepted across all merchants across platforms including mobile wallets. After this, users will be able to pay various utility bills as well. According to sources, NPCI is the process of integrating Bharat QR code with Bhim app.

Through the app, one can transfer money from one bank account to the other from smartphone using UPI platform. The main difference between Bhim and UPI is that there is no need to download multiple mobile applications of various banks as a single Bhim app come work for all banks.

Besides, the plan is to incentivise all kinds of digital payments, including using Bhim and Bharat QR code. An action plan, which will become a standard for all ministries and states to be followed, is underway and is expected to be announced soon, the ministry official said. It has been suggested to give visible discounts on digital payments vs cash payments.

Earlier this month, economic affairs secretary Subhash Garg had said the government is considering more incentives to spur digital payments.

On Wednesday, Telecom Regulatory Authority of India (Trai) chairman R S Sharma suggested removal of costs related with digital payments such as merchant discount rate (MDR) for promoting digital transactions in the country. "If we want to have a sustainable digital transactions system, we must ensure MDR is zero, especially for small-value transactions because that is where the tipping point will come," he said adding that India has the most robust digital-payments infrastructure.

"We are a frugal country in the sense that we don't want to pay anything for digital services, especially when there is an alternative not to pay," he said at a financial inclusion conclave.

GOING CASHLESS

• The move, if implemented, is expected to spur the usage of mobile payments
   
• Government has been pushing Bhim usage to digitise payments
   
• Bhim may become a single point for mobile payments via Bharat QR code