In a significant push towards a cashless economy, Prime Minister Narendra Modi on Friday announced launching of a biometric payment system using Aadhaar platform within two weeks even as he exhorted citizens to adopt digital currency from the New Year. He was speaking at DigiDhan Mela event, launching Unified Payment Interface (UPI)-based mobile payment application called BHIM (Bharat Interface for Money).
BHIM will enable fast and secure cashless transactions using mobile phones.
The Prime Minister said BHIM will be world’s biggest wonder. The app takes on the likes of Paytm, Mobikwik, Freecharge and other mobile payment apps. While launching the app, the PM made payment to Khaadi.
“Be it a smartphone or feature phone of Rs 1,000 to Rs 1,200, BHIM app can be used. There is no need to have internet connectivity. One only needs thumb. There was a time when an illiterate was called a ‘angutha chchap’. Now time has changed. Your thumb is your bank now. It has become your identity now,” said the PM, dedicating the new app to BR Ambedkar.
After card payments and e-wallets, payments through the new system can be made by just a thumb impression after the bank account is linked with Aadhaar gateway, he said at a DigiDhan Mela, an event organised to celebrate the success of digital currency push.
Modi used wit and humour to take swipes at his political opponents for criticising demonetisation, saying the drive was aimed at catching the “mouse” that eats away the nation’s wealth. Taking a dig at the Congress, Modi said during the earlier UPA regime, money was lost in scams and now news is about money coming back to the system.
“look at the newspapers or video clips from three years ago. The news was all about what we lost in scams. However today it is about what has come back or what is the gain,” Modi said.
BHIM app can be downloaded from Google Play Store. The app is expected to be alternative for plastic cards and point of sale (PoS) machines. More over the app will be a competition to Credit Card companies which charge transaction fees and it is expected to be more affordable to small merchants in rural areas.
Merchants need to download the Aadhar cashless merchant app on their smartphones connected to a biometric reader, which is currently available for Rs 2,000. The customer has to feed their Aadhar number into the app, select bank through which the transcation will take place and the biometric scan will work as a password for authenticating transactions.
Reiterating the importance of digital payments and its benefits on several occasions during his speech, Prime Minister urged the people to atleast use five digital payments from January 1. Modi said that ‘lucky Grahak Yojana’ and DigiDhanVyapar Yojana were a Christmas gift to the nation. He also felicitated the winners of lucky Grahak Yojana. Over 100 days, several prizes of Rs.1000 will be given to people through lucky draws. The mega draw will be held on April 14, the birth anniversary of Ambedkar.