Bluetooth not working on Ubuntu 16.04 LTS

I want to send files from my phone to my Laptop and vice versa through Bluetooth. But the Bluetooth on my system doesn't work. When I turn on the Bluetooth switch in System Settings > Bluetooth, nothing happens and also the visibility switch on the right hand side is always disabled.

Output of rfkill list is as follows:

0: phy0: Wireless LAN
    Soft blocked: no
    Hard blocked: no
1: hp-wifi: Wireless LAN
    Soft blocked: no
    Hard blocked: no
2: hp-bluetooth: Bluetooth
    Soft blocked: no
    Hard blocked: no

Output of dmesg | grep Blue is as follows:

[   29.519992] Bluetooth: Core ver 2.21
[   29.520012] Bluetooth: HCI device and connection manager initialized
[   29.520016] Bluetooth: HCI socket layer initialized
[   29.520019] Bluetooth: L2CAP socket layer initialized
[   29.520025] Bluetooth: SCO socket layer initialized
[   54.305795] Bluetooth: BNEP (Ethernet Emulation) ver 1.3
[   54.305799] Bluetooth: BNEP filters: protocol multicast

[   54.305804] Bluetooth: BNEP socket layer initialized

I don't know if the drivers were installed or not and I don't know how to check it either.

Any idea what the issue is?

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Update:

Output of lspci -knn | grep Net -A2; lsusb is as follows:

09:00.0 Network controller [0280]: Ralink corp. RT3290 Wireless 802.11n 1T/1R PCIe [1814:3290]
    DeviceName:  
    Subsystem: Hewlett-Packard Company Ralink RT3290LE 802.11bgn 1x1 Wi-Fi and Bluetooth 4.0 Combo Adapter [103c:18ec]
Bus 001 Device 003: ID 064e:c342 Suyin Corp. 
Bus 001 Device 002: ID 8087:8000 Intel Corp. 
Bus 001 Device 001: ID 1d6b:0002 Linux Foundation 2.0 root hub
Bus 003 Device 001: ID 1d6b:0003 Linux Foundation 3.0 root hub

Bus 002 Device 001: ID 1d6b:0002 Linux Foundation 2.0 root hub