BHIM and UPI are often treated as the same- but they aren’t. One is a payment system, the other an app built on it. So which should you use, and what are the transaction limits? Here’s a simple guide to clear the confusion.
Understanding the difference between UPI and BHIM
New Delhi: In everyday conversations, BHIM and UPI are often used interchangeably, leading many users to believe they are the same. While both are closely linked to digital payments in India, they serve different roles. Understanding this distinction can help users make better choices when using cashless payment systems.
UPI, or Unified Payments Interface, is a digital payment infrastructure developed to enable fast, secure, and cashless transactions using a smartphone. It is one of India’s most significant steps toward building a cashless economy.
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Built on the Immediate Payment Service (IMPS) framework, UPI allows users to transfer money instantly without needing bank account numbers or IFSC codes. Instead, payments are made using a Virtual Payment Address (VPA), QR codes, or mobile numbers. One of UPI’s biggest advantages is its 24×7 availability, enabling real-time transactions at any hour, including weekends and holidays.
BHIM, short for Bharat Interface for Money, is a mobile application that enables users to make digital payments using UPI technology. Launched in 2016, BHIM was designed to help ordinary users easily adopt digital payments without technical complexity.
Developed by the National Payments Corporation of India (NPCI), BHIM is the official government-backed UPI app. It allows users to send and receive money using UPI IDs, QR codes, mobile numbers, or bank account details. Because it is directly developed by NPCI, many users view BHIM as a secure and reliable option for UPI-based transactions.
The core difference between the two is simple:
UPI is a payment system and technology
BHIM is an app that uses UPI
UPI acts as the backbone that processes transactions, while BHIM is one of several apps that provide access to this system. Other popular apps like Google Pay, PhonePe, and Paytm also operate on the same UPI infrastructure.
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The National Payments Corporation of India has set a ₹1 lakh limit per transaction on UPI, and BHIM follows the same guidelines. Daily limits may vary depending on the bank, but the underlying UPI rules remain consistent across all apps.
For users who prefer a simple, no-frills interface, BHIM is a good choice. Those looking for added features such as rewards, bill payments, or integrations may prefer other UPI apps. The advantage is that multiple UPI apps can be installed on a single smartphone, allowing users to switch easily based on their needs.
