Updated on 01.03.2024
In supersession of earlier BBPS-related guidelines/circulars, the Reserve Bank of India issued a new direction on March 1, 2024. The earlier circular was suitably modified as under.
BBPOUs are the System Participants in the Bharat Bill Payment System (BBPS) BBPS. A BBPOU may function either as a Biller Operating Unit or a Customer Operating Unit or both.
Bharat Bill Payment Operating Unit aka BBPOU can be categorised as Banking entities and non-banking entities.
Banks (All Scheduled Commercial Banks including RRBs / Urban Cooperative Banks / State Cooperative Banks / District Central Cooperative Banks), non-bank Payment Aggregators (PAs)1, and other existing entities authorised as BBPOUs can participate in BBPS as Operating Units. Banks and non-bank PAs, intending to operate as BBPOUs, will not require a separate authorisation. They shall intimate DPSS, and RBI Central Office before commencing operations. The banking entities include Private banks, Public sector banks, Foreign banks, Cooperative banks, Regional Rural Banks, Payment Banks, and Small Banks.
BBPOUs deal with on-board billers/sub-billers, aggregators, and payment gateways; and set up agent networks and customer touchpoints to handle bill payments through different delivery channels, including self-service, assisted electronic and manual modes.
The benefits of BPOU are that the biller will have single-point access to all payment channels (digital and physical). The biller gets a Timely and Guaranteed Settlement. The reconciliation and MISs to the billers are quite easy. The biller enjoys a relaxed handling of settlement-related issues. They have the potential to offer new Value Added Services like Online Presentment. The transaction cost is low so the system offers higher revenue opportunities. The admin portal of the system offers redressal of Consumer Complaints & Dispute Management.
The Bharat Bill Payment System (BBPS) which is an interoperable platform for repetitive bill payments, currently covers five segments — direct-to-home (DTH), electricity, gas, telecom, and water bills. To know more read:
RBI issues amendment to guidelines for Bharat Bill Payment System (BBPS)
