To bring all digital bill payments under a single umbrella, RBI is in the process to launch an integrated electronic bill payment system called Bharat Bill Payment System. It recently granted licenses to 33 companies to operate under the system through which customers can pay their electricity, water, gas and telephone bills.
There are 26 banking institutions and 7 non-banking entities which have got the approval from RBI. Among the banking institutions, State Bank of India, Bank of Baroda, HDFC Bank, Axis Bank, ICICI Bank, Kotak Mahindra Bank and RBL Bank have reportedly received the license.
PayU has been listed amongst the first non-bank entity that has been granted this license out of the total of 62 non-bank entities that applied for the said license.
Digital wallet companies Paytm and Oxigen, and payment services company TechProcess, which runs Bill Junction, are some other non-bank entities which have received the nod from RBI to operate as Bharat Bill Payment Operating Units (BBPOU).
BBPS will offer a single window facility to consumers to pay their bills without going through multiple digital platforms like they do at present. In future, subject to the clearance from RBI, the platform is also expected to expand to include payments of school fee, university fee, municipality taxes, mutual funds, insurance premiums, etc.
In future, subject to the clearance from RBI, the platform is also expected to expand to include payments of school fee, university fee, municipality taxes, mutual funds, insurance premiums, etc.
PayU India, PayTm, Oxigen, SBI, ICICI bank, HDFC bank, Kotak Mahindra Bank, Bank of Baroda, Axis Bank and RBL Bank and TechProcess have confirmed their BBPOU license.
Commenting on the same, Shailaz Nag, COO and Co-founder, PayU India said
“With BBPS, customers would be presented with the opportunity of easy bill payments for almost all Billers in the country. PayU would ensure that the most convenient and best in class user experience is delivered to its customers, thus encouraging more people to transact online. ”
Last year in October, RBI had asked for bids from companies which are already facilitating digital bill payments to function as units of Bharat Bill Payment System. It had received 62 applications from non-bank entities and 80 requests from banks to become a part of BBPS.
National Payments Corporation of India (NPCI) will serve as a nodal agency to operate Bharat Bill Payment System and is responsible for setting standards for processes to be followed by operating units.
The system is set to be operational by the end of June by which time NPCI will look to prepare maximum number of licenses to grant to approved companies. It is targeting 7-8 institutions initially to distribute licenses and get BBPS started.