Bharat Bill Payments System

With the increase in e-commerce sites in India, people also like to buy
products online and pay for them online only through debit cards, credit
cards, netbanking and some platforms. Under the retail payment
transactions, bill payments like electricity, water, phone bills, etc. also form a
major component.

With a need of bill payments system, various organizations decided to

provide a single platform to make all these payments. So an integrated bill
payment system called Bharat Bill Payment System (BBPS) was
proposed for which the policy guidelines were issued by the Reserve Bank of
India on November 28, 2014.

National Payment Corporation of India (NPCI) had been identified to act

as Bharat Bill Payment Central Unit (BBPCU) which will be a single
authorized entity for operating the BBPS. The BBPCU will set necessary
operational, technical and business standards for the entire system and its
participants, and also undertake clearing and settlement activities. It will
work only as a medium to connect multiple billers and agents through
various Operating Units.

BBPS will operate on entities called Bharat Bill Payments Operating Unit
(BBPOU). BBPOU will be authorised operational entities, which can fulfill the
standards set by the BBPCU for facilitating bill payments online as well as
through a network of agents, on the ground. Banks and non-bank entities
presently engaged in any of the above bill payment activities falling under
the scope of BBPS can apply for approval from RBI under the Payment and
Settlement Systems (PSS) Act 2007.
Some facts about BBPS:

 The biggest advantage is that the bill can be paid anywhere and
anytime.
 The system will provide multiple payment modes and instant
confirmation of payment.
 Payments may be made through the BBPS using cash, transfer
cheques, and electronic modes.
 Retail points will be set up for bill payments across the country who
would be able to accept all kinds of bills payments made through
credit cards, debit cards, mobile wallets, net banking (IMPS, NEFT).
 The BBPS outlets would include banks, ATMs, business
correspondents, kiosks etc.
 Payments would be made securely through the NPCI network with
instant receipts getting generated.
 PayU India is the first non-bank entity which got RBI approval to set
up and operate Bharat Bill Payment System (BBPS).