BHIM Aadhaar

()– a biometric-based payment system – it will allow users to make payments using just their fingerprint.

-Aadhaar – also known as Aadhaar Pay – will make online payments easier for the illiterate and those without mobile phones or online wallets. It is also certain that the app will bring down people’s use of credit and debit cards and reduce cash transactions.

“Any citizen without access to smart phones, internet, debit or credit cards will be able to transact digitally through the Bhim-Aadhaar platform, thus realising Ambedkar’s vision of social and financial empowerment for all.


How Bhim-Aadhaar works:

The platform is meant for use by merchants only. Customers with Aadhaar-linked bank accounts can make payments by authenticating the transaction with their fingerprint. Through the app, merchants get paid online from the customers’ bank accounts.

When accepting payments through Bhim-Aadhaar, merchants will not be charged a Merchant Discount Rate, which is an amount they pay to a bank for accepting digital transactions through credit or debit cards.

So far, 27 major banks with around three lakh merchants are already on board with the new initiative so they can start accepting payments using the new platform.

Earlier, Niti Aayog had explained that Bhim-Aadhar would use two platforms – and . While APB will serve as a repository between banks and customers, AEPS will authenticate the online process. The department has emphasised that the app was fully secure to use.

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