RBI issued drafted guidelines for implementation of Bharat Bill Payment System
The Reserve Bank of India (RBI) on 7 August 2014 issued draft guidelines for implementation of Bharat Bill Payment System
The Reserve Bank of India (RBI) on 7 August 2014 issued draft guidelines for implementation of Bharat Bill Payment System (BPPS), an anytime anywhere bill payment system. The proposed guidelines describe the basic requirements of operating the BBPS.
Bharat Bill Payment System is intended for the implementation of a unified bill payment system across the country. It would enable the customers to pay the bills with the help of agents and getting instant confirmation of the payment made. School fees, municipal taxes and utility bills payments would become easier now.
This integrated bill payment system will comprise of two entities:
- Entity operating at Bharat Bill Payment System (BBPS) will be setting up the standards related to payments, clearance and settlement process
- Second entity would be Bharat Bill Payment Operating Units (BBPOUs). It will be carrying out the operations in adherence to the standards fixed by BBPS.
Authorised entities such as agents, banks, service providers, payment gateways would be the participants at the Bharat Bill Payment System.
Bill Payment in India
Generally, most of the retail transactions are carried out through bill payments. The G. Padmanabhan Committee was formed by RBI to study the Feasibility of Implementation of GIRO-based Payment Systems anticipated that around 30800 million bills amounting to more than 600000 crore rupees are paid each year in 20 Indian cities.
These payments are accepted in both cash and cheque. The existing bill payment systems are secure enough, but they do not address the concerns of the customers completely. The centralized Bharat Bill Payment System would be a appropriate solution for the same.
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