Union Budget 2017: Two New Schemes Announced To Boost BHIM App

Finance Minister Arun Jaitley today announced two new schemes to boost the government's BHIM or Bharat Interface for Money digital payment app. Digital economy will clean up the system, and weed out corruption and black money, Mr Jaitley said in his Budget speech, announcing an Aadhaar-based payment system to promote digital transactions for people living in remote areas.

"A merchant enabled Aadhaar payment system will be launched shortly. This will specially be beneficial to those who do not have debit cards, mobile wallets or mobile phones," Mr Jaitley said.

He spoke about the BHIM app, launched on December 30 by Prime Minister Narendra Modi as a big push towards digital India after the November notes ban.

"Nearly 125 lakh people have adopted the BHIM app. Government will launch two new schemes - a referral bonus and a cash back scheme for merchants - to promote the use of BHIM," Mr Jaitley said.

The BHIM app, based on Unified Payments Interface (UPI), is available on Google's Play Store. It has been upgraded twice since its launch to include seven new languages besides English and Hindi. The new version has enhanced security features and an improvised customer care mechanism.

Mr Jaitley said a mission will be set up with a target of over 2,500 crore digital transactions for 2017-18 through the United Payments Interface, Aadhaar Pay, Immediate Payment Service and debit cards.

Stating that the government wanted to promote digital economy as an integral part of the government's strategy, the Finance Minister said it would have a transformational impact on the system.

"This, in turn, is expected to energise private investment in the country through lower cost of credit. India is now at the cusp of a massive digital revolution. A shift to digital platform has huge benefits to the common man," he said.

The BHIM app, said the finance minister, will unleash the power of mobile phones for making digital payments and financial inclusion.