BHIM and UPI Basics: How to Pay Safely and Avoid Common Scams
Set up BHIM, understand your UPI PIN, and learn to spot the payment request, QR code and fake helpline scams that target UPI users.
UPI lets you send money from your bank account instantly using just your phone. BHIM is the UPI app from the National Payments Corporation of India (NPCI), the organisation that runs UPI. The basics and safety rules in this guide apply to BHIM and also to other UPI apps, because they all work on the same system.
AppStepwise is an independent guide, not an official government service, and is not connected to NPCI or any bank.
How UPI works, in plain words
UPI links your bank account to your mobile phone. A few terms are worth knowing:
- UPI ID: your payment address, which looks a bit like an email address. People can pay you using your UPI ID, your mobile number or your QR code.
- UPI PIN: a 4- or 6-digit secret number you set for your bank account. It works like an ATM PIN, but for UPI.
- QR code: a square code that holds a UPI ID. You scan a QR code to pay someone.
The single most important rule is this: you need your UPI PIN only to send money or to check your balance. You never need it to receive money.
What you need before you start
- A bank account with your mobile number registered with the bank.
- The SIM for that mobile number in the same phone where you install the app. The app verifies your SIM, usually by sending an SMS from your phone.
- Your debit card, or in many banks your Aadhaar with an OTP, to set your UPI PIN.
- The BHIM app, free from the Google Play Store or the Apple App Store. Check that the publisher is National Payments Corporation of India (NPCI) before installing.
How to set up BHIM
Install and choose your language
Open the app and select your preferred language.
Verify your mobile number
If your phone has two SIMs, choose the one with your bank-registered number. The app will verify it.
Secure the app
The app asks you to set a way to unlock it, such as a passcode or your phone's screen lock. This is separate from your UPI PIN.
Link your bank account
Select your bank. The app finds the accounts linked to your mobile number, and you pick the one you want to use.
Set your UPI PIN
Enter the details asked for, such as the last six digits and expiry date of your debit card, or verify with an Aadhaar OTP where your bank allows it. Enter the OTP from your bank, then choose your UPI PIN.
Try a small first payment
Send a small amount to a family member and ask them to confirm it arrived. This helps you learn the steps without risk.
Paying safely, every time
- Check the name that appears on screen before you pay. It should match the person or shop you mean to pay.
- Check the amount carefully, including the number of zeroes.
- Enter your UPI PIN only on the app's own PIN screen, and only when you are sending money.
- Wait for the success message and check the payment in your transaction history.
- At shops, look at the name shown after scanning. Fraudsters sometimes paste their own QR stickers over a shop's code.
Common UPI scams and how to spot them
| Scam | How it works | What to do |
|---|---|---|
| Enter your PIN to receive money | Someone, often posing as a buyer on a classifieds site, says they are sending you money and asks you to approve a request or enter your PIN. | Stop. Receiving money never needs your PIN. Any screen asking for your PIN is taking money out. |
| Scan this QR code to get paid | You are sent a QR code and told that scanning it will credit money to you. | Scanning a QR code is for paying. Never scan a code to receive money. |
| Fake payment requests | A request appears in your app that looks like it comes from a company, refund desk or government office. | Decline anything you did not start yourself. Check the name and amount before approving. |
| Fake customer care | You search online for a helpline and call a number run by fraudsters. They ask for your PIN or OTP, or ask you to install a screen-sharing app. | Use helpline details only from your bank's or app's official channels. Never install apps at a stranger's request. |
| Sent by mistake, please return | Someone claims they paid you by accident and pushes you to send the money back quickly. | Check your own bank statement. If money really came in, ask them to contact their bank instead of sending it to a number they give you. |
| Fake payment screenshots | A buyer shows a payment successful screen, or you get an SMS that looks like a bank credit. | Check your bank balance or app history before handing over goods. |
In 2025, NPCI stopped person-to-person collect requests, where one individual could send another a request to pull money, to curb this kind of fraud. Shops, websites and apps can still send you payment requests, for example when you pay while shopping online, so the same care applies.
If a payment fails or goes to the wrong person
- Money debited but payment failed: the amount is usually reversed to your account automatically. If it is not, raise a complaint from the app's transaction history or with your bank.
- Paid the wrong person: contact your bank at once with the transaction reference number. A UPI payment cannot be undone from the app, so the bank has to take it up.
- No resolution: if your bank does not resolve your complaint in time, you can escalate it to the Reserve Bank of India's ombudsman through RBI's official complaint portal.
Handy features to know
- UPI Lite: lets you make small payments without entering your UPI PIN each time, from a small balance you load in advance.
- Balance check: you can see your bank balance in the app using your UPI PIN.
- Changing your UPI PIN: if you think someone has seen it, change it in the app. If you have forgotten it, reset it using your debit card details or Aadhaar OTP.
- Limits: transaction limits vary by bank and type of payment, so a large payment may not go through in one attempt.
Frequently asked questions
Do I need to enter my UPI PIN to receive money?
No, never. Your UPI PIN is needed only to send money or check your balance.
Does BHIM work with my bank?
Most banks in India support UPI. When you link an account, the app shows the banks you can choose from.
Is BHIM free?
Yes, BHIM is free to download from the official app stores. Check that the publisher is NPCI before installing.
I changed my mobile number. What now?
Update the new number with your bank first, then set up UPI again on your phone with the new SIM.
What should I do if I shared my PIN?
Change your UPI PIN immediately and inform your bank. If money has been taken, call 1930 without delay.