A New Initiative of Bharat Bill Payment System
- Bharat Bill Payment System (BBPS) is a Reserve Bank of India’s imperative system that provides mobilized and billing services to customers across geographies with reliability and security of transactions.
- It provides agents' network online or online, multiple payment methods and instant confirmation by providing bill payment services to customers. It will make the cash of less cash easier through payment of electronic payments through electronic channels.
- Including the BBPS, National Payments Corporation of India (NPCI) launched a project for 26 Indian Bharat Payment Operating Units.
- Reserve Bank of India (RBI) issued the policy guideline on the recommendation of BBPS on 28th November, 2014.
Structure of BBPS:
- Bharat Bill Payment Central Units (BBPCUs) and
- Bharat Bill Payment Operating Units (BBPOUs)
BBPCU – It will be authorized by BBPS operator. The settlement established in BBPS with the approval of RBI should be adhered to by all the participants.
Role of BBPCU –
- It will setting the business value for the entire system and its participants.
- It will be responsible for necessary technical and operational services besides undertaking clearing and settlement activities.
- Settlement standards established under BBPCU should be followed by all participants with the approval of Reserve Bank of India.
- NPCI, a Government of India undertaking is authorized to act as BBPCU.
BBPOUs –It will be approved by Operation unit. The agents of BBPOUs, banks, payment gateways, billers and other service provider like issuers of prepaid instruments are the participants in BBPS.
Role of BBPOUs –
- Companies connecting to this system are called BBPOUs, which are consent to set up agent networks for bill payments.
- The bank and other entities that have experience in the field of bill collection or service and relevant experience in transaction process are authorized to act as BBPOU.
- Under the Payment and Settlement Act 2007 the bank and non-banking entities, who wish to become BBPOU need to obtain approval from RBI.
- Retail points will be set for bill payment in countries where credit cards, debit cards, mobile wallets, net banking (IMPS, NHT) will be able to accept all types of bill payments.
- PayU India is the first non-bank entity to get approval for the Reserve Bank of India to set up and manage the payment system of Indian Bills.
- The system will provide instant payment of multiple payment modes and payments.
- The NPCI network will be funded through the creation of an instant receipt.
- Settlement Guarantee Fund (SGF) Mechanism.
- Management of Master Data Management (MDM).
- BBPS will include outlet banks, ATMs, business representatives, kiosks etc.