RBI Norms for Setting Up of Bharat Bill Payment Operating Units

May 28, 2022

The Reserve Bank of India has eased the norms for non-bank entities for setting up Bharat Bill Payment operating units by reducing the net worth that is required to Rs 25 crore. This was done with the aim of encouraging more stakeholders to participate in this segment. Currently, the required net worth was Rs 100 crore to get authorization for a non-bank Bharat Bill Payment Operating Units (BBPOU).

What is Bharat Bill Payment System?

BBPS is an interoperable platform that is used for bill payments and the coverage of this platform is extended to all categories of billers raising recurring bills. Payments through this platform can be made via transfer cheques, cash, and electronic modes. The BBPS is owned by the National Payments Corporation of India (NPCI). It is a payment platform that provides safety and reliability of transactions. The users of this platform enjoy benefits such as:

a centralized customer grievance redressal mechanism,
standardized bill payment experience
prescribed customer convenience fee

Currently, the BBPS has been integrated with the Unified Payments Interface (UPI) for safe, easy, and instant payments that can be done through UPI-enabled smartphones.

What are Bharat Bill Payment Operating Units?

All those entities that have received authorization from the RBI to conduct bill payments on the BBPS are known as BBPOU. They can be non-bank or bank entities.

The role of the authorized Bharat Bill Payment Central Unit is played by which organization?

The NPCI functions as the authorized Bharat Bill Payment Central Unit (BBPCU), which is responsible for setting various business standards, procedures, and rules for business and technical requirements for all participants. NPCI, as the BBPCU, also undertakes settlement and clearing activities that are related to transactions routed via the BBPS.

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