Bharat Bill Payment System (BBPS)

The Reserve Bank of India has introduced a revised regulatory framework for Bharat Bill Payment System (BBPS) to streamline bill payment processes, increase participation, and enhance customer protection.

• This framework will apply to NPCI Bharat Bill Pay Limited (NBBL) and all Bharat Bill Payment Operating Units (BBPOUs).

About Bharat Bill Payment System (BBPS):

• BBPS is an integrated bill payment system, which provides interoperable and accessible bill payment services through a network of agents.
• Customers can use multiple payment modes and receive instant payment confirmations.
• It is developed and operated by the National Payments Corporation of India (NPCI).
• NPCI functions as the Bharat Bill Payment Central Unit (BBPCU), setting business standards and procedures.
• BBPS allows payments via cash, transfer cheques, electronic modes, and Unified Payments Interface (UPI).
• Banks and bill aggregators can serve as Operating Units, providing services irrespective of the biller’s origin.
• It enables non-bank payment aggregators to participate as operating units.
• The system supports both Customer Operating Units (COUs) and Biller Operating Units (BOUs).

Background:

• The RBI set up a committee in 2013 to study the feasibility of Giro-based payment systems.
• Over 30,800 million bills are generated yearly in the top 20 cities of India.
• The BBPS was established to provide an efficient alternative to existing bill payment systems.
• In August 2022, RBI extended BBPS for cross-border inward billing for NRIs.
• NPCI launched the Unified Presentment Management System (UPMS) for recurring payments in January 2022.

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