Government Internal Revenue Order (GIRO) Advisory Group (GAG) under the chairmanship of Prof. Umesh Bellur on 23 April 2014 has submitted its report to Reserve Bank of India (RBI).
The Reserve Bank of India constituted the GIRO Advisory Group (GAG) in October 2013 to implement a national GIRO-based Indian Bill Payment System. It is a centralised process that allows payments for utility bills, educational fees and insurance premium by just visiting the bank branch.
Recommendation of the GIRO Advisory Group
It has suggested a mechanism for centralised bills payment system in India.
Advisory Group has suggested setting up two Organisations, Bharat Bill Payment Services (BBPS) and the Bharat Bill Payment Operating Units (BBPOUs).
It recommended a tiered structure where the Bharat Bill Payment Services (BBPS) will be the authorised standard setting body while the Bharat Bill Payment Operating Units (BBPOUs) will be the authorised operational units, working in adherence to the standards set by the BBPS.
The BBPS will function as a ‘not-for-profit’ organisation which has necessary experience in the payment systems space, while the BBPOUs may be operated on commercial lines by existing entities in the bill payments space as well as new entities interested in this segment. The BBPS will also handle the settlement responsibilities arising out of the transactions in the system.
All the entities in this tiered structure will operate under the uniform and single brand of the BBPS. This will also ensure a uniform dispute resolution and customer grievance redressal mechanism, thereby building trust and confidence in such a centralised bill payment system.
What: submitted its report
When: 23 April 2014