Reserve Bank of India (Bharat Bill Payment System) Directions, 2024

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Reserve Bank of India (Bharat Bill Payment System) Directions, 2024

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Why is the Reserve Bank of India (RBI) in the news?

The RBI is known as the financial system’s regulator and supervisor in India. It is responsible for issuing rules and regulations related to the banking operations which must be followed by the banking and financial system.

 

RBI’s main function is to keep the confidence of the public alive in the banking and financial system and to protect the interests of the depositors while offering cost-effective services to all the citizens.

 

RBI has recently come up with some updated rules as an effort to make the procedure of bills payment easier. This effort will hopefully encourage participation and also protect the customers in a better way. These rules are called the Reserve Bank of India (Bharat Bill Payment System) Directions, 2024. RBI launched them with the aim to streamline the existing regulations since many major changes have occurred when it comes to different payment methods. The RBI believes that the whole bill payment process will be made smoother by these directions.

Benefits of the new rules

The new rules will offer the following benefits:

When will the new rules be implemented?

Starting from 1st April, 2024, these new rules will be applicable. All the involved parties including the banks, National Payments Corporation of India’s Bharat Bill Payment System (BBPS), and other non-bank payment participants will have to stick to these rules to avoid any penalties.

About Bharat Bill Payment System (BBPS)

BBPS is a unified platform which helps in payment and collection of bills through various payment modes such as UPI, net banking, debit card, credit card, cash and the prepaid instruments.

 

Users can make payments with the help of mobile apps, mobile banking, bank branches and physical agents with the help of BBPS. This bills payment platform is owned by the National Corporation of India. 

Key Players And Their Responsibilities

The Bharat Bill Pay Central Unit (BBPCU) will roll out the rules and standards for participation in the system as well as manage the operational aspects. The billers will be boarded onto BBPS by the Biller Operating Unit (BOU) which will make sure they comply with all the necessary regulations. The customers will be provided with digital or physical interfaces by the Customer Operating Unit (COU) which will ensure access to all billers on BBPS.

 

Must Read: What is Merchant Bankers Definition?

Conclusion

The updated Bharat Bill Payment System directions will help to streamline the entire billing process and enable greater participation by the public. These directions will also enhance customer protection. These updated rules will be applicable from 1st April, 2024. All involved parties will have to adhere to the new regulations announced.

Frequently Asked Questions (FAQs)

Q1. What is Bharat Bill Payment System (BBPS)?

A. It is a unified platform which assists in payment or collection of bills through various payment methods like UPI, net banking, debit card, credit card, cash and the prepaid instruments. It is owned by the National Corporation of India.

 

Q2. Who will the Reserve Bank of India (Bharat Bill Payment System) Directions, 2024 apply to?

A. Banks, National Payments Corporation of India’s Bharat Bill Payment System (BBPS), and other non-bank payment participants.

 

Q3. What is the National Payment Corporation (NPCI) of India?

A. NPCI is an organization which was set up in 2008 with the guidance & support of RBI & IBA for all retail payments in India. 

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