Bharat Bill Payment System
From July 1, all credit card payments made through third-party apps must go through the Bharat Bill Payment System (BBPS), which is what the Reserve Bank of India (RBI) wants. People with credit cards from big Indian banks will be affected by this restructuring. They won’t be able to use platforms like CRED, PhonePe, Amazon Pay, and Paytm to pay their bills unless they are integrated with BBPS.
Definition of the Bharat Bill Payment System (BBPS)
It is run by the National Payments Corporation of India (NPCI) and is meant to make the payment process faster for both companies and customers. Many different ways to pay are supported by this method, including both physical and digital ones. It lets people quickly and easily make transactions across a network of banks, apps, and websites. It also lets people choose from different payment ways to suit their needs.
Significance of BBPS in Recent RBI Policies
The goal of adding BBPS is to make the processing of credit card payments in India more consistent and safe. The RBI wants to make things more regulated and clear by sending all third-party app payments through BBPS. This will lower the risks of illegal data access and financial mistakes. By combining different payment methods on a single site, this system also makes monitoring easier and transactions less complicated.
Current Integration Status with BBPS
Twelve Indian banks, including well-known ones like SBI, ICICI Bank, and Kotak Bank, are currently active members of the BBPS network as of the prescribed date. Though, big banks like HDFC Bank and Axis Bank are still working on connecting their systems to BBPS.
Challenges in Integration
Because of the large investments needed to completely change systems that already serve many third-party apps, some banks may have been slow to integrate. Additionally to making transfers easier, these platforms allow banks to collect large amounts of customer data that helps them provide more personalized services. Transitioning to BBPS requires a lot of resources and changes to how internal banking works, which might not be seen as immediately profitable.
Month: Current Affairs - July, 2024
Category: Economy & Banking Current Affairs - 2024