Moneycontrol
Last Updated : Jun 04, 2018 01:19 PM IST | Source: Moneycontrol.com

Falling share of BHIM prompts PM to ask all ministries, states to increase transactions on app

The decision comes after share of the BHIM app fell among payment platforms based on the United Payment Interface

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Prime Minister Narendra Modi has asked all central ministries and departments as well as states and Union Territories to increase digital transactions after state-run BHIM (Bharat Interface for Money) mobile app slowed down in comparison to its competitors, reports Economic Times.

In a bid to boost use of BHIM app, Modi has asked to set targets for digital transactions through the app and aim to achieve them by August 15.

The decision comes after share of BHIM app fell among payment platforms based on the  United Payment Interface (UPI) to 6.3 percent transactions in April from 9.5 percent in 2017-18, according to data on the website of the National Payments Corporation of India (NPCI).

Although the app has seen an increase in transactions since its launch by the PM on December 30, 2016, it has been losing out to other popular UPI platforms such as Google Tez, PhonePe and Paytm.

In April, there were 12.6 million transactions worth Rs 4,973 crore on BHIM app, while in the previous financial year, it recorded 87.91 million transactions worth Rs 30,018 crore.

To curb the fall of BHIM app's share, the government had on April 14 launched attractive cashback schemes for customers and merchants using the platform. These included Rs 51 cashback on successfully completing first financial transaction and up to Rs 750 cashback in a month through other transactions. A merchant can earn up to Rs 1,000 cashback every month through various transactions. Referrals also yield a cashback.

Apart from these, a meeting was held on May 23 during which the PM asked cabinet secretary PK Sinha to hold a meeting with the Department of Financial Services to resolve the issue of bank transaction charges on BHIM-UPI usage.

Such charges on small transactions through BHIM app have already been waived by the government.

In the meeting, the PM especially asked the ministries of railways and food and public distribution, which handle large volumes of payments, to make efforts to boost usage of BHIM app.

Increase in digital transactions through platforms such as BHIM app could figure in the PM’s Independence Day address on August 15, said people aware of the matter.
First Published on Jun 4, 2018 09:28 am
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