With the rise of digital payments in India, two names you often hear are UPI and BHIM. While both are linked to the Unified Payments Interface (UPI) system, they serve different purposes and come with specific limits and features. Understanding the difference can help you choose the right platform for safe, convenient, and fast transactions.
What Is UPI?
- Full Form: Unified Payments Interface
- Purpose: A system that allows you to transfer money instantly between bank accounts using a mobile number, UPI ID, or QR code.
- Features:
What Is BHIM?
- Full Form: Bharat Interface for Money
- Purpose: A government-backed UPI app developed by NPCI to promote digital payments across India.
- Features:
- Simple interface designed for ease of use.
- Supports all major banks linked with UPI.
- Ideal for first-time wallet PLATFORM' target='_blank' title='digital-Latest Updates, Photos, Videos are a click away, CLICK NOW'>digital users.
- Can generate QR codes for merchants and small businesses.
- Also allows checking bank balance and transaction history.
Key Differences Between UPI and BHIM
Feature
UPI
BHIM
Type
Payment system/protocol
Government-backed UPI app
Apps
Multiple apps (PhonePe, GPay, Paytm, etc.)
Single app developed by NPCI
Interface
Varies by app, feature-rich
Simple, beginner-friendly
Usage
P2P and P2M payments
P2P and P2M payments, QR-based transactions
Security
Bank-level security, app-dependent
Bank-level security with government backing
Target Audience
Tech-savvy users, heavy app users
First-time wallet PLATFORM' target='_blank' title='digital-Latest Updates, Photos, Videos are a click away, CLICK NOW'>digital users, rural users
Transaction Limits
UPI (via third-party apps like PhonePe, GPay, etc.):
- Per Transaction: ₹1 – ₹1,00,000 (varies by bank)
- Daily Limit: Typically ₹1,00,000 to ₹2,00,000 depending on the bank
BHIM UPI:
- Per Transaction: ₹1 – ₹40,000
- Daily Limit: ₹40,000 (some banks allow higher, check with your bank)
⚠️ Note: The RBI and NPCI set UPI guidelines, but each bank can adjust limits slightly.
Which One Should You Use?
- Go with BHIM if you are new to wallet PLATFORM' target='_blank' title='digital-Latest Updates, Photos, Videos are a click away, CLICK NOW'>digital payments or prefer a simple, secure government-backed app.
- Use other UPI apps if you want more features, integration with multiple wallets, or higher transaction limits.
Bottom Line
UPI and BHIM are both part of India’s push towards wallet PLATFORM' target='_blank' title='digital-Latest Updates, Photos, Videos are a click away, CLICK NOW'>digital payments, but the main difference lies in interface, features, and usage flexibility. BHIM is simpler and government-backed, while other UPI apps offer more functionality and higher limits. Knowing the limits and differences helps you choose the right platform for your financial needs.
Disclaimer:
The views and opinions expressed in this article are those of the author and do not necessarily reflect the official policy or position of any agency, organization, employer, or company. All information provided is for general informational purposes only. While every effort has been made to ensure accuracy, we make no representations or warranties of any kind, express or implied, about the completeness, reliability, or suitability of the information contained herein. Readers are advised to verify facts and seek professional advice where necessary. Any reliance placed on such information is strictly at the reader’s own risk.
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