In an attempt to promote its mobile payments application, the government could soon offer higher cash back to users who opt for the digital transaction through the BHIM app.
In an attempt to promote its mobile payments application, the government could soon offer higher cash back to users who opt for the digital transaction through the BHIM app. A Times of India report said that the move may take place from August 15, this Independence Day. The Bharat Interface for Money (BHIM) app was launched by the PM Modi led government in December 2016. NPCL currently operates the app. The central government had decided to promote its Digital India campaign after the demonetisation of higher value currencies in the country (Rs 500 and Rs 1000 notes). Prime Minister Narendra Modi had basically rolled out the app to boost digital payments.
Currently, the app offers cashback ranging from Rs 10 to Rs 25. The TOI report cited NPCI Managing Director and CEO Abhaya Prasad Hota as saying that the government has been told that there is a need for an increase in cash back incentives to make more people begin using it. He added that an approval from the government is pending and the final decision is expected around August 15.” So we can expect a new update of the Bhim app to be launched soon.
Meanwhile, there is a BHIM referral scheme, which is also operational. Here the existing BHIM user (referrer) needs to encourage the new BHIM user (referee) to download the BHIM App and enter the referrer’s mobile number as the referral code. For both referrer and the referee to get their incentive, the referee has to make minimum 3 unique transactions totaling a minimum value of Rs 50. On successful completion of the process, the referrer would get Rs 10 and the referee who does the payment would get Rs 25, NCPI said in a release.
The BHIM app, that aims to make payments through mobiles, has logged 2 crore downloads and close to Rs 1,500 crore worth of transactions have taken place through it, IT Minister Ravi Shankar Prasad had recently said.
Meanwhile, earlier in July, according to National Payments Corporation of India, the transactions made using the Bhim app nearly doubled during the first quarter of FY18 from the previous quarter. The number of transactions on BHIM rose to 11.8 million during the quarter ended June from the aggregate 6.2 million clocked between December 31 – the day the app was launched – and March 30. Notably, during the same timespan, fresh download slipped to 3.4 million from 12.5 million as the app found a certain critical mass of users.
As per the data available on the NCPI’s website the payments on the UPI channel are seeing a shift towards the Bhim app. While the overall value of UPI transactions rose to Rs 8,073.27 crore in the June quarter from Rs 6,843.18 crore during the August-March period, the value of transactions made on UPI platforms other than BHIM dropped to Rs 4,278.35 crore in the first quarter of the current fiscal from Rs 4,848 crore in the quarter ended March.