RBI to cover all repetitive bill payments under Bharat Bill Payments System1 min read . Updated: 07 Aug 2019, 04:05 PM IST
- RBI will issue a detailed guideline in this regard by next month
- Prepaid recharges are not allowed on BBPS
NEW DELHI : You will soon be able to make all bill payments, except prepaid recharges, using the Bharat Bill Payment System (BBPS) after the Reserve Bank of India (RBI) gave its nod.
"In order to leverage the advantages of the BBPS and harness its full potential, it has been decided to permit all categories of billers (except prepaid recharges) who provide for recurring bill payments to participate in BBPS on a voluntary basis," the RBI said in 'Statement on Developmental and Regulatory Policies' released after the monetary policy review.
The central bank said a detailed guideline in this regard will be issued by September-end.
So far, BBPS, an interoperable platform for repetitive bill payments, is used to make five types of bills -- direct-to-home (DTH), electricity, gas, telecom and water bills.
Apart from digitisation of cash-based bill payments, these segments would also benefit from the standardised bill payment experience for customers, centralised customer grievance redressal mechanism, prescribed customer convenience fee and the like, the RBI said.
It further said that in order to diversify risks and encourage innovation and competition, the RBI has decided to offer 'on tap' authorisation to entities desirous to function/operate/provide platforms for Bharat Bill Payment Operating Unit (BBPOU); Trade Receivables Discounting System (TReDS) and White Label ATMs (WLAs).
The on-tap facility is aimed at encouraging more players to participate in pan India payment platform.