RBI has expanded the scope and coverage of Bharat Bill Payment System (BBPS) to include categories of billers who raise recurring bills and payments (except prepaid recharges) as eligible participants, on a voluntary basis.
- However, at present, the facility of payment of recurring bills through BBPS is available only in segments i.e. direct to home (DTH), electricity, gas, water and telecom.
- Expansion of biller categories would increase the user base of Bharat Bill Pay along with providing an efficient, cost-effective alternative to existing systems and enhance consumer confidence and experience.
Source: Indiamart
About BBPS
- The Bharat Bill Payment System (BBPS) is an RBI conceptualised system driven by National Payments Corporation of India (NPCI).
- It is a one-stop payment platform for all bills, providing an interoperable and accessible “Anytime Anywhere” bill payment service to customers across the country with certainty, reliability and safety of transactions.
- Payments through BBPS may be made using cash, transfer cheques and electronic modes. Bill aggregators and banks, who will function as operating units, will carry out these transactions for the customers.
NPCI
Source: Wikipedia
- National Payments Corporation of India (NPCI) is an umbrella organization for all retail payments system in India.
- It was set up with the guidance and support of the Reserve Bank of India (RBI) and Indian Banks’ Association (IBA) under the provisions of the Payment and Settlement Systems Act, 2007, for creating a robust Payment &, Settlement Infrastructure in India.
- NPCI, has been incorporated as a “Not for Profit” Company under the provisions of Section 25 of Companies Act 1956 (now Section 8 of Companies Act 2013), with an intention to provide infrastructure to the entire Banking system in India for physical as well as electronic payment and settlement systems.
- The Company is focused on bringing innovations in the retail payment systems through the use of technology for achieving greater efficiency in operations and widening the reach of payment systems.
- The ten core promoter banks are State Bank of India, Punjab National Bank, Canara Bank, Bank of Baroda, Union Bank of India, Bank of India, ICICI Bank, HDFC Bank, Citibank N. A. and HSBC. In 2016 the shareholding was broad-based to 56 member banks to include more banks representing all sectors.
NPCI was established with following objectives –
- To consolidate and integrate the existing multiple systems into a nation-wide uniform and standard business process for all retail payment systems.
- To facilitate an affordable payment mechanism to benefit the common man across the country and propel financial inclusion.