Introduction to Bharat Bill Payment System (BBPS)

 



Bharat Bill Payment System facilitates bill payment and improves security and speed of payments through central unit (BBPCU) and operational units (BBPOU).

Bharat Bill Payment System (BBPS) was introduced to act as a three-tiered structure to launch a bill payment system in the country with the sole objective of making payments available to customers anytime and anywhere.

Bharat Bill Payment System (BBPS) aims to form an integrated and interoperable bill payment system in the country and provide accessible bill payment services to all customers through multiple payment methods and a network of agents.

Bharat Bill Payment System was recently launched by the Reserve Bank of India as a mandatory system to facilitate bill payments across geographies. BBPS offers an integrated and interoperable bill payment service with security, certainty and reliability of transactions.

The service is available in several payment modes, online and through a network of agents. Instant confirmation is generated for account payments. The BBPS will transform the company from a cash-based to an electronic payment system, making it less dependent on cash.

Currently, the country's online trading system consists of two entities, including content providers and payment aggregators. The payment side of this system includes banks and intermediaries, while the content side includes a variety of intermediaries from digital market organizers to intermediaries.

The Bharat Bill Payment System (BBPS) will expand in the future to include services that facilitate the collection of recurring payments such as school fees, taxes, bill payments and other recurring or periodic payments. E-commerce services may also be included as determined by the Reserve Bank of India (RBI).

Participants in the Bharat Bill Payment System (BBPS) include all authorized entities, including entities active in BBPS, their agents, banks, service providers, etc.

Purpose of BBPS

1.   It is convenient for customers as they can access the system anytime and anywhere.

2. It is a system that increases customer trust by providing reliable services.

3.   Having multiple payment methods is also an advantage.

4. The system provides payment verification on the spot and makes it easy to verify.

Benefits of BBPS

The benefits of Bharat Bill Payment System can be divided into two categories: customer benefits and partnership benefits.

Customer benefits

 

1. Customers can pay their bills anytime, anywhere simply by connecting to the BBPS network online or through an agent.

2. Access to this system is available from anywhere, including unbanked or minimally banked areas.

3.  You can use multiple payment methods such as debit cards, credit cards and e-wallets.

4.    You can pay invoices from any biller through a single portal.

5.   The bill payment service center is available in the nearest location to the customer's place of work or residence.

6. Possible outputs of BBPS include bank branches, ATMs and customer service centers. Customers can pay from any BBPS store.

7.   Instant confirmation of bill payment via SMS, email or paper receipt is a peace of mind for your customers.

8.   You can trust and feel safe using this system.

System participants

BBPS is mainly divided into two authorized participants who perform different activities; hence it can be called a two-tier system. They are:

Bharat Bill Payment Central Unit (BBPCU)

This unit will be the sole unit authorized to administer BBPS. The unit will set guidelines for operational, technical and business development for participants and the system as a whole. It will also manage settlement and clearing activities. For effective implementation of BBPS, NPCI (National Payments Corporation of India) will be treated as BBPCU, till BBPCU is started as a separate unit under NCPI.

Bharat Bill Payment Operating Units (BBPOU)

The Reserve Bank of India authorizes the BBPCU as an operating unit to function as per the rules framed by the BBPCU. Unlike a single BBPCU in India Bill Payment System there can be multiple BBPOUs working efficiently under the system. BBPOUs will operate in layers, expanded through a network of agents. It will work with various billers, payment gateways, agency networks, aggregators and customers to manage bill payments. Both banks and non-bank entities are eligible to act as BBPOUs.

Other participants of BBPS will include banks, payment gateways, billers, service providers, agents etc.

What are the eligibility criteria for Bharat Bill Payment System (BBPS) participants?

There are certain eligibility criteria to participate in the Bharat Bill Payment System (BBPS). The selection criteria are as follows:

An entity eligible to be a BBPS participant must be a company registered under the Companies Act 1956 or the Companies Act 2013 The entity must have assets of at least 100 million rupees. The company must have domain expertise in collecting accounts and related services. Company should be incorporated in India. The company must obtain a license from the Reserve Bank of India (RBI) under the Payments and Settlements Act, 2007.