RBI expands coverage of Bharat Bill Payment System
In a consumer friendly initiative, Reserve Bank of India (RBI) has expanded the scope and coverage of Bharat Bill Payment System (BBPS) to include all categories of billers who raise recurring bills and payments (except prepaid recharges) as eligible participants, on a voluntary basis.
With the expansion of the scope of payment facility, RBI now allows other recurring/repetitive bill payments like school fees, insurance premiums, EMIs and municipal taxes, which can also be paid through BBPS.
At present, the facility of payment of recurring bills through BBPS is available only in five segments i.e. direct to home (DTH), electricity, gas, water and telecom.
Expansion of biller categories would increase the user base of Bharat Bill Pay along with providing an efficient, cost-effective alternative to existing systems and enhance consumer confidence and experience.
What is BBPS?
It is an integrated bill payment system that offers interoperable bill payment service to customers online and via a network of agents on ground.
This interoperable platform enables a customer to pay bills like telephone, water, gas, direct-to-home (DTH) and electricity at a single location (electronic or physical).
The system provides multiple payment modes and instant confirmation of payment.
BBPS functions under National Payments Corporation of India (NPCI).
Category: Economy & Banking Current Affairs