NEW DELHI :
Expanding the scope of Bharat Bill Payment System (BBPS), the Reserve Bank of India (RBI) has allowed the interoperable platform to accept all repetitive bill payments, which may include school fees, insurance premiums and municipal taxes. So far, BBPS was accepting only direct to home (DTH), electricity, gas, telecom and water bills.
The only category excluded now is prepaid recharges. "...it has been decided to expand the scope and coverage of BBPS to include all categories of billers who raise recurring bills (except prepaid recharges) as eligible participants, on a voluntary basis," the RBI said in a circular.
BBPS, which functions under the aegis of National Payments Corporation of India (NPCI), said the facility would be expanded to include other types of repetitive payments like insurance premium, mutual funds, school fees, EMIs, and municipal taxes, among others.
BBPS payments can be made using cash, cheques as well as through digital methods such as internet banking, debit, credit card, among others.
"Expansion of biller categories would increase the user base of Bharat Bill Pay along with providing an efficient, cost-effective alternative to the existing systems and enhance consumer confidence and experience," Taxmann's DGM Rachit Sharma said.
“Host of non utility organizations like schools (for school fees), housing societies (for maintenance charges) coming onto payment platforms will speed up transition to a less cash economy," said Vivek Belgavi, partner and fintech leader, PwC.
BBPS is an integrated bill payment system which offers interoperable bill payment service to customers online as well as through a network of agents on the ground.
“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 had said on August 7, adding detailed instructions will be issued by the end of September.