RBI expands Scope of BBPS

Reserve Bank of India on has expanded the scope of Bharat Bill Payment System (BBPS) which will be effective from August 31, 2021.

How scope has been expanded?

Scope of BBPS has been expanded by adding ‘mobile prepaid recharges’ as a biller category. This move will help millions of prepaid phone subscribers across India.

Background

Scope and coverage of BBPS were expanded in September 2019 which then included all categories of billers raising recurring bills as eligible participants voluntarily. It did not included billers of mobile prepaid recharges. Before 2019, facility of payment of recurring bills through BBPS was available only to five sectors viz, direct to home (DTH), gas, electricity, water and telecom.

Bharat Bill Payment System (BBPS)

BBPS, functioning under National Payments Corporation of India (NPCI), is an integrated bill payment system offering interoperable bill payment service to customers online and through a network of agents on ground. It provides for multiple payment modes and instant confirmation of payment.

National Payments Corporation of India

NPCI is an umbrella organisation that operates retail payments and settlement systems under the ownership of Reserve Bank of India. this not-for-profit organisation was founded in December 2008.  It is registered under Section 8 of Companies Act 2013.

Month: Current Affairs - June, 2021