Skip to main content

What is Bharat Bill Payment System (BBPS)?

Reserve Bank of India (RBI) has revised the regulatory framework for Bharat Bill Payment System (BBPS).

What is Bharat Bill Payment System (BBPS)?

Bharat Bill Payment System (BBPS) is an integrated bill payment platform which enables payment / collection of bills through multiple channels (mobile apps, mobile banking, physical agents, bank branches, etc.) using various payment modes (UPI, internet banking, cards, cash, prepaid payment instruments, etc.). 

Who are the participants in BBPS?

The BBPS has the following participants –

  • Bharat Bill Payment Central Unit (BBPCU) – BBPCU is the entity which operates BBPS; sets operational, technical and business standards, and also undertakes clearing and settlement functions. 
  • Bharat Bill Payment Operating Units (BBPOUs) – BBPOUs are the system participants in BBPS. A BBPOU may function either as a Biller Operating Units (BOUs) or a Customer Operating Units (COUs) or both.
    • BOU is an entity which on-boards billers, either directly or through biller aggregators, on to the BBPS platform for collection of its bills.
    • COU is an entity which provides its customers with an interface (physical / digital) to pay bills, either directly or through agent institutions.

Who is BBPCU?

  • NPCI Bharat BillPay Limited (NBBL), a wholly owned subsidiary of National Payments Corporation of India (NPCI), is the authorised BBPCU.
  • NBBL is the entity authorised as the Payment System Provider for BBPS.
  • NBBL as the BBPCU, provides a platform connecting customers and billers, through COUs and BOUs, respectively. 
  • NBBL also undertakes clearing and settlement activities for transactions routed through the BBPCU.

Who are BBPOUs?

  • Banks (All Scheduled Commercial Banks including Regional Rural Banks / Urban Cooperative Banks / State Cooperative Banks / District Central Cooperative Banks), non-bank Payment Aggregators (PAs) 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 authorization but they shall intimate RBI before commencing operations.

What are other directions?

  • The transactions facilitated through BBPS platform will require the bill to be fetched before payment initiation. 
  • In case of transactions involving payments for prepaid services, the customer relationship with the biller will be validated through the BBPS platform.
  • A non-bank BBPOU shall open an escrow account with a Scheduled Commercial Bank exclusively for BBPS transactions.
  • Non-bank BBPOU operates as PA when it collects funds from its customers or settles funds with the billers on-boarded by it. For the purpose of maintenance of escrow account, payment system operated by BBPOU shall be deemed to be ‘designated payment system’ under Section 23A of the PSS Act, 2007.
  • NBBL shall put in place a dispute resolution framework for centralised end-to-end complaint management in compliance with RBI’s guidelines on Online Dispute Resolution (ODR) System for Digital Payments dated August 06, 2020.
  • COUs and BOUs shall ensure that failed transactions are dealt with in accordance with the timelines prescribed in RBI’s circular on Harmonisation of Turn Around Time (TAT) and customer compensation for failed transactions using authorised Payment Systems dated September 20, 2019.

From when shall the directions be applicable?

The revised framework on BBPS shall be applicable from April 01, 2024.


References

Reserve Bank of India. (2024, February 29). 'Master Direction – Reserve Bank of India (Bharat Bill Payment System) Directions, 2024'. Retrieved from https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=12616&Mode=0


Follow at - Telegram   Instagram   LinkedIn   X   Facebook

Labels:

Comments

Post a Comment

Popular Posts

National Strategy for Financial Inclusion (NSFI) 2025-30

Reserve Bank of India (RBI) has published National Strategy for Financial Inclusion (NSFI) 2025-30. Financial Inclusion The Committee on Financial Inclusion (Chairman: Dr C Rangarajan, RBI, 2008) defined financial inclusion as “the process of ensuring access to financial services, timely and adequate credit for vulnerable groups such as weaker sections and low-income groups at an affordable cost”. The Committee on Medium-Term Path to Financial Inclusion (Chairman: Shri Deepak Mohanty, RBI, 2015) viewed financial inclusion as, “convenient access to a basket of basic formal financial products and services that should include savings, remittance, credit, government-supported insurance and pension products to small and marginal farmers and low income households at reasonable cost with adequate protection progressively supplemented by social cash transfers, besides increasing the access of small and marginal enterprises to formal finance with a greater reliance on technology to cut costs an...
Post a Comment
Read more

Rupee Interest Rate Derivatives

Reserve Bank of India (RBI) has issued directions on rupee interest rate derivatives. What is Interest Rate Derivative (IRD)? Interest Rate Derivative (IRD) means a financial derivative contract whose value is derived from one or more Rupee interest rates, prices of Rupee interest rate instruments, or Rupee interest rate indices. To which transactions shall the directions be applicable? The directions shall be applicable to Rupee IRD transactions undertaken in the over-the-counter (OTC) market and on recognised stock exchanges in India. Forward Contracts in Government Securities shall be undertaken in the OTC market in terms of the Reserve Bank of India (Forward Contracts in Government Securities) Directions, 2025, dated February 21, 2025. Who are eligible participants in IRD markets? Resident Non-resident, through its central treasury or its group entity, where applicable.  What are the directions on trading of IRDs on recognised stock exchanges? A recognised stock exchange is per...
Post a Comment
Read more

Export / Import of Currency and Possession / Retention of Foreign Currency

Reserve Bank of India (RBI) has updated the guidelines on export and import of currency. What are the guidelines on export and import of Indian currency? Transferor Transfer from Transfer to Nature of currency Maximum limit Person resident in India India Countries other than Nepal and Bhutan Currency notes of Government of India (GoI) and RBI notes ₹25000 per person Commemorative coins 2 coins Person resident in India gone out of India on temporary visit, on his return Countries other than Nepal and Bhutan India Currency notes of GoI and RBI notes ₹25000 per person Person resident outside India (not citizen of Pakistan / Bangladesh) visiting India India Any country Currency notes of GoI and RBI notes ₹25000 per person Any country India Person (not citizen of Pakist...
Post a Comment
Read more

RBI’s Monetary Policy (December 05, 2025): In A Nutshell

The bi-monthly monetary policy of Reserve Bank of India (RBI) was announced on December 05, 2025. Here are some of the highlights of the monetary policy announcement. Rates   Change Rate Policy repo rate Reduced by 25 bps 5.25% Standing deposit facility (SDF) rate 5.00% Marginal standing facility (MSF) rate 5.50% Bank rate 5.50% Monetary policy stance Monetary policy stance unchanged as ‘neutral’. Domestic Economy  Real Gross Domestic Product (GDP) growth accelerated to 8.2% in Q2, buoyed by strong spending during the festive season which was further facilitated by the rationalisation of the goods and services tax (GST) rates.  Real GDP growth for 2025-26 is projected at 7.3%. For the first time since the adoption of flexible inflation targeting (FIT), average headline inflation for a quarter at 1.7% in Q2, breached the lower tolerance threshold (2%) of the inflation target (4%). It dipped further to an all-time low of 0.3% in October 2025. The underlying inflation pressu...
Post a Comment
Read more

Reserve Bank of India Act, 1934 – Part-X – Section 58B to 58G

The Reserve Bank of India Act, 1934 provides the statutory basis of the functioning of the Reserve Bank of India (RBI). In a series of articles, we will briefly go through the provisions of RBI Act, 1934. This is the tenth and last article in the series.  Chapter V – Penalties Section 58B – Penalties Section Offense Punishment 58B(1) Whoever in any application / declaration / return / statement / information furnished or in any prospectus / advertisement issued for the invitation of deposits of money from the public, willfully makes a false statement or willfully omits to make a material statement. Imprisonment for up to 3 years with fine. 58B(2) Any person fails to produce any book / account / document / statement / information. Fine of up to Rs.1 lakh in respect of each offence. Further fine of up to Rs.5000 for every day till the offense continues. 58B(3) Any person contravenes the ...
Post a Comment
Read more