The Reserve Bank of India eases norms concerning non-bank entities to set up Bharat Bill Payment operating units by bringing down the net-worth requirement to Rs 25 crore. This move aims at encouraging more players in the segment. Currently, a net worth of Rs 100 crore is needed to authorise a non-bank BBPOU (Bharat Bill Payment Operating Units). This requirement is being considered a constraint to greater participation.
To increase participation, RBI decided to align the net worth requirement concerning non-bank BBPOUs to other non-bank participants that handle customer funds (such as payment aggregators) and have a similar risk profile.
The Bharat Bill Payment System (BBPS) are rendered to all categories of billers raising recurring bills; it is an interoperable platform for bill payments.
BBPS users qualify for benefits such as a centralised customer grievance redressal mechanism, prescribed customer convenience fee, and standardised bill payment experience. RBI also mentioned that BBPS had witnessed an increase in the number of transactions and the number of onboarded billers. However, a corresponding growth has not been recorded when it comes to the number of non-bank BBPOUs.
For any clarifications/feedback on the topic, please contact the writer at bhavana.pn@cleartax.in
Bhavana is a Senior Content Writer handling the GST vertical. She is committed, professional, and has a flair for writing. When away from work, she enjoys watching movies and playing with her son. One thing she can’t resist is SHOPPING! Her favourite quote is: “Luck is what happens when preparation meets opportunity”.
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