BHIM App open-source license model

November 11, 2022

BHIM App open-source license model was announced by the National Payments Corporation of India (NPCI).

What is BHIM App open-source license model?

Under the BHIM App open-source license model, regulated entities in the UPI ecosystem can get license for accessing source code of the BHIM app. New features that will be included in the application in the future can also be accessed by these licensees.

Why was open-source license model launched?

Currently, many banks do not have their own mobile banking applications. Therefore, they are unable to provide the benefits of UPI to their customer base. The NPCI aims to address this gap by providing readily available features of UPI to these banks via the BHIM App licensing model. It will act as an economic and quick-to-market solution for these entities.

The BHIM licensing model will empower the banking entities to provide benefits of the UPI to their customer base with a readily-available UPI application. This will minimise time, efforts and costs incurred for promoting the UPI based transactions.

What is Unified Payments Interface (UPI)?

Unified Payments Interface (UPI) is an instant real-time payment system that is used on mobile devices to instantly transfer money between two bank accounts. It was developed by the NPCI. The UPI enabled 45.6 billion transactions during Financial Year 2022. It is currently one of the most prominent forms of digital payments in India.

The NPCI International Payments Ltd (NIPL) – the international arm of the NPCI – announced that the BHIM UPI is live at NEOPAY terminals in the United Arab Emirates. This enables millions of Indians traveling to the UAE to make payments using BHIM UPI. This feat was achieved after NIPL and NEOPAY (payment subsidiary of Mashreq bank) collaborated to create the acceptance infrastructure in the UAE. It allows Indian tourists to make UPI transactions across NEOPAY enabled shops and merchant stores.

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