Bharat Bill Payment System

Bharat Bill Payment System
Operating areaIndia
Founded2013; 11 years ago (2013)
OwnerNPCI
Websitewww.bharatbillpay.com

Bharat Bill Payment System (BBPS) is an integrated bill payment system in India offering interoperable and accessible bill payment service to customers through a network of agents of registered members as Agent Institutions (AI), enabling multiple payment modes, and providing instant confirmation of payment.[1]

National Payments Corporation of India (NPCI) functions as the authorised Bharat Bill Payment Central Unit (BBPCU), which will be responsible for setting business standards, rules and procedures for technical and business requirements for all the participants. NPCI, as the BBPCU, will also undertake clearing and settlement activities related to transactions routed through BBPS. Existing bill aggregators and banks are envisaged to work as Operating Units to provide an interoperable bill payment system, irrespective of which unit has on-boarded a particular biller. Payments may be made through the BBPS using cash, transfer cheques, and electronic modes. BBPS has also been integrated with the Unified Payments Interface (UPI) for Easy, Safe & Instant Payments through UPI enabled Smartphones.[2]

Background

The Committee headed by RBI Executive Director G. Padmanabhan was set up in 2013 to study the feasibility of implementation of Giro based Payment Systems. It had estimated that over 30,800 million bills amounting to ₹6223 billion are generated each year in the top 20 cities in the country.[1]

It was felt that an integrated bill payment system is required in the country that could offer interoperable and accessible bill payment services to customers through a network of agents, allow multiple payment modes, and provide instant confirmation of payment. This should also serve as an efficient, cost-effective alternative to the existing systems and enhance consumer confidence and experience.

On 6 August 2022, the Reserve Bank of India (RBI) allowed BBPS cross border inward billing facility for Non-resident Indians. NRIs can now directly pay utility bills, education fees, municipal tax and insurance-related payments without the need to send money first to a resident Indian bank account.[3] The facility became active from 13 September 2022.[4] On September 20, RBI governor Shaktikanta Das officially launched Bharat BillPay Cross-Border Bill Payments at Global Fintech Fest 2022.[5]

Unified Presentment Management System

NPCI on 4 January 2022 launched Unified Presentment Management System (UPMS) for recurring payment. Customers can set up standing instructions for any mode of payment. The payment will be done automatically in terms of auto-debit and bill payment management. UPMS will help in payment of mutual funds, insurance, subscriptions, school fee payments etc.[6]

See also

References

  1. ^ a b "Implementation of Bharat Bill Payment System (BBPS) - Guidelines". Reserve Bank of India. 28 November 2014. Archived from the original on 6 December 2014. Retrieved 29 November 2014.
  2. ^ "NPCI - About Bharat Bill Payment System (BBPS)". National Payments Corporation of India. Archived from the original on 3 January 2017. Retrieved 2 January 2017.
  3. ^ M, Maulik (6 August 2022). "NRIs will now be able to pay for services in India directly". mint. Retrieved 7 August 2022.
  4. ^ "Good News for NRIs: India now accepts cross-border payments". The Economic Times. 13 September 2022. Retrieved 13 September 2022.
  5. ^ Chanchal (20 September 2022). "UPI Lite among key digital payment initiatives launched: Here's how it works". mint. Retrieved 21 September 2022.
  6. ^ Shetty, Mayur (4 January 2022). "NPCI arm enables recurring payments for services at a click". The Times of India. Retrieved 6 January 2022.


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