UPI vs BHIM: Key Differences and Transaction Limits Explained

Balasahana Suresh
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 Interdata-face (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 Interdata-face
  • Purpose: A system that allows you to transfer money instantly between bank accounts using a mobile number, UPI ID, or QR code.
  • Features:
    • Works through multiple banking apps like PhonePe, google Pay, Paytm, and sbi YONO.
    • No need to enter bank account details each time; a UPI ID suffices.
    • Supports P2P (Person-to-Person) and P2M (Person-to-Merchant) payments.
    • Available 24x7, including holidays.
What Is BHIM?

  • Full Form: Bharat Interdata-face for Money
  • Purpose: A government-backed UPI app developed by NPCI to promote digital payments across India.
  • Features:
    • Simple interdata-face 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

Interdata-face

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 interdata-face, 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.

For more interesting updates click and follow Indiaherald WhatsApp channel

Find Out More:

BHM

Related Articles: