Prime Minister Narendra Modi today launched an Aadhaar-based mobile payment application ‘BHIM’ (Bharat Interface for Money) which will enable easier digital payments and transactions, for which a thumb impression was enough to operate it. It is a re-branded version of UPI (Unified Payment Interface) and USSD (Unstructured Supplementary Service Data).

Addressing at Digi Dhan Mela at talkatora stadium in New Delhi, Modi said, the the mobile app is a tribute to Dr B R Ambedkar and will immensely benefit the citizens. BHIM stands for Bharat Interface for Money and is a rebranded version of the UPI (Unified Payment Interface) and USSD (Unstructured Supplementary Service Data).

The app will minimize the role of plastic cards and PoS machines to boost a cashless economy. The app will also eliminate fee payments for service providers like card companies such as Mastercard or Visa, which has proved a stumbling block in getting merchants to pay for digital payments.

Merchants will have to download the Aadhar cashless merchant app on their smart phones, connected to a biometric readers, which will be available for Rs 2000. The customer will put their Aadhar number into the app, select the specified bank and the biometric scan will work as the password.

Prime Minister Narendra Modi said that the two schemes announced to reward small traders and customers – Lucky Grahak Yojana and Digi Dhan Vyapar Yojana – are a Christmas gift to the nation. Prizes will be given to those who make transactions of more than Rs 50 and less than Rs 3000, so that the poor can win.

Over the 100 day period, several families will be given the prizes. These schemes were launched to benefit poor. The mega draw will take place on 14th April, the birth anniversary of Dr. Babasaheb Ambedkar, he added.