After Singapore, Bhutan adopts India’s BHIM-UPI – PuuchoIAS

Topics Covered:  Indigenization of technology and developing new technology. 

After Singapore, Bhutan adopts India’s BHIM-UPI: 


Bhutan has become the first country to adopt India’s Unified Payment Interface (UPI) standards for its quick response (QR) code. It is also the second country after Singapore to have BHIM-UPI acceptance at merchant locations. 

  • Bhutan will also become the only country to both issue and accept RuPay cards as well as accept BHIM-UPI. 


What is BHIM? 

Bharat Interface for Money (BHIM) is India’s digital payment application (app) that works through UPI, a system that powers multiple bank accounts into a single mobile application. 


What is UPI? 

Unified Payments Interface (UPI) is an instant real-time payment system, allowing users to transfer money on a real-time basis, across multiple bank accounts without revealing details of one’s bank account to the other party. 


The BHIM app has three levels of authentication: 

  1. For one, the app binds with a device’s ID and mobile number. 
  2. Second, a user needs to sync whichever bank account (UPI or non-UPI enabled) in order to conduct the transaction. 
  3. Third, when a user sets up the app they are asked to create a pin which is needed to log into the app. The UPI pin, which a user creates with their bank account is needed to go through with the transaction. 


Insta Curious: 

Do you know what a Bank Wire is? Also know the Difference between Bank Wire and Wire Transfer. Read Here



Prelims Link: 

  1. Who controls ATMs in the country? 
  2. What is UPI? 
  3. What is National Automated Clearing House (NACH)? 
  4. What is National Financial Switch? 
  5. Three levels of authentication in BHIM. 

Sources: the Hindu. 

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