RBI issued final guidelines for the Bharat Bill Payment System
The system will help consumers pay multiple bills like electricity, telephone and school fees at a single point of transaction.
The Reserve Bank of India on 28 November 2014 issued final guidelines for the Bharat Bill Payment System (BBPS). The system will help consumers pay multiple bills like electricity, telephone and school fees at a single point of transaction.
The BBPS is an integrated bill payment system offering inter-operable and accessible bill payment service to customers through a network of agents, enabling multiple payment modes, and providing instant confirmation of payment.
The National Payments Corporation of India (NPCI) will function as the authorised Bharat Bill Payment Central Unit (BBPCU) to set the standards for BBPS processes which need to be adhered to by all operating units (Bharat Bill Payment Operating Units - BBPOUs) under the system.
The prospective participants of the BBPS system are advised to interact with the NPCI to work out the modalities.
The apex bank has set a 100 crore rupees net worth and domestic registration as qualifying conditions for those seeking to be authorised collection agents.
In the Second Quarter Review of Monetary Policy 2012-13, the Reserve Bank of India announced the setting up of a Committee to finalise the modalities of implementing an electronic GIRO payment system in India.
The Committee was set up under the chairmanship of G. Padmanabhan, Executive Director, Reserve Bank of India to study the feasibility of implementation of an electronic GIRO payment system in the country.
Subsequently, based on the recommendations of the Committee, a GIRO Advisory Group was constituted under the Chairmanship of Prof. Umesh Bellur, IIT Bombay, with the objective of defining a framework that enables the creation of pan India touch points for bill payments by customers in the country, irrespective of the geographical location of the billers.
The Group, which submitted its report on 20 March 2014, had recommended a tiered structure for bill payments system in the country – with a central unit setting the standards and various operating units working in accordance and adherence to the standards set for the BBPS.