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UPI vs BHIM: You probably use your smartphone for online payments. Making payments through UPI with a single tap is incredibly easy. But do you think UPI and BHIM are the same thing? If so, you're wrong. You need to understand the difference between UPI and BHIM.

UPI vs. BHIM: In today's digital age, every second person is making online payments using UPI on their smartphone. However, many people don't understand the difference between UPI and BHIM. If you're confused between UPI and BHIM, that won't be a problem anymore. This article explains the differences between the two.

What is UPI?

UPI stands for Unified Payments Interface. It is an instant payment system developed by the National Payments Corporation of India (NPCI). NPCI is regulated by the country's central bank, the RBI. UPI is based on the IMPS infrastructure. UPI allows users to transfer money between any two bank accounts. UPI is used through UPI apps such as GPay, PhonePe, and BHIM.

How is UPI payment done?

Whenever a new user uses a UPI app for the first time, they need to set up a UPI PIN during registration. This PIN is the UPI Personal Identification Number, which is a 4-6 digit passcode. The user then needs to enter this UPI PIN every time they authorize all bank transactions.

The UPI PIN needs to be set only once. Even if you have different UPI apps, the UPI PIN does not change. It remains the same across all apps. If you enter the wrong UPI PIN during a transaction, the transaction cannot be completed. Furthermore, if you forget your UPI PIN and repeatedly enter it, your bank may temporarily block your UPI transfer facility. However, this service is only temporarily blocked and can be restored later.

What is BHIM?

BHIM stands for Bharat Interface for Money. It is a UPI-based payment interface and India's own payment app. With this interface, users can transfer funds in real time using a single identity, such as a mobile number or name.

BHIM can be used for different purposes-

You can transact money through UPI.

• You can send money through bank account and IFSC code.
• The QR code can be scanned to make the payment.

-You can pay bills on merchant websites through UPI.

You can book flight tickets through UPI.

-Mobile can be recharged through UPI.

-Transaction history can be checked on the app.

UPI transaction limit

The transaction limit for UPI is up to ₹1 lakh per transaction. However, certain categories of UPI transactions have a transaction limit of up to ₹2 lakh. For transactions involving capital markets, collections, insurance, foreign inward remittances, Initial Public Offerings (IPOs), and Retail Direct Schemes, the maximum limit per transaction is up to ₹5 lakh.

PC:Times Now Bharat