National Payments Corporation of India (NPCI) has said that it has received a final signal from the Reserve Bank of India to function as the Bharat Bill Payment Central Unit (BBPCU) and operate the Bharat Bill Payment System (BBPS). On August 31, 2016, the RBI had approved 8 BBPS operating units to took part in the pilot. After one year of successful pilot testing, the RBI has given final clearance to NPCI.
On August 31, 2016, the RBI had approved 8 BBPS operating units to took part in the pilot. After one year of successful pilot testing, the RBI has given final clearance to NPCI.
A. P. Hota, MD & CEO, NPCI said, “There is a specific direction from RBI to operate the Central Unit as a Strategic Business Unit of NPCI. Nearly 45 crore bills comprising electricity, telecom, DTH, water, and gas are permitted under BBPS. This initiative will provide a major push to digital payments as it is a big step forward in formalizing the bill payment system in the country”.
The concept of Bharat Bill Payment System(BBPS) is given by RBI while the system is driven by National Payments Corporation of India(NPCI). It is a one-stop payment platform for all bills, providing an interoperable and accessible anytime and anywhere. It provides bill payment service to customers across the country with certainty, reliability, and safety of transactions.
There are 24 Bharat Bill Payment Operating Units (BBPOU) which are certified by NPCI. The certified units include three public sector banks (Bank of Baroda, Union Bank of India and Indian Overseas Bank), 10 private banks, five cooperative banks and six non-bank biller aggregators.
Currently, 42 large billers in five utility sectors have been on-boarded. Major public sector banks including State Bank of India (SBI) are still under certification. The real impact would be visible only when SBI joins.
At present, the bulk of transactions on BBPS is mainly for electricity bill payments. The power sector potentially contributes to about ₹18 crore bills each month, of which only 10% is digital.