Of the 19.16 million downloads the Bharat Interface for Money (BHIM) app has seen, only 5.1 million, or 26.6%, have translated into an active linkage with bank accounts, the National Payments Corporation of India (NPCI) said on Monday. The organisation said that active usage of the app has been limited as a large number of people in the country have not linked their mobile numbers to their bank accounts.
AP Hota, managing director and chief executive officer at NPCI, said, “This is the reason for launching a special drive by the government of India for linking of mobile number with bank accounts. Banks are expected to reach out to all their customers by various means and ensure universal acceptance of mobile banking services at the earliest.”
The BHIM app, launched on December 31, is based on the Unified Payments Interface (UPI) channel for making peer-to-peer payments. A half of all transactions made through UPI are originated through the BHIM app.
After demonetisation of high-value currency notes on November 8, usage of UPI grew exponentially for a while. Growth in usage began to plateau in February as the RBI gradually eased restrictions on cash withdrawals and the effect of a low base began to wear off.
UPI transactions in February aggregated to R1,902.07 crore, up 14.7% from R1,658.81 crore in January. This contrasts with month-on-month growth figures of 137% and 677% in January and December respectively.