Technology

RBI Expands Coverage of BBPS over All Recurring Bill Payments

The Reserve Bank of India (RBI) has reportedly extended the Bharat Bill Payment System’s (BBPS) coverage over all repetitive bill payments as part of the RBI’s consumer-friendly initiatives.

Earlier, the BBPS facility had catered only to five segments – gas, electricity, direct-to-home (DTH), water and telecom. However, the new system will now allow payment of school fees, equated monthly instalments (EMIs), mutual funds, insurance premiums, and municipal taxes, among others.

In a circular issued by the RBI, it stated that BBPS, functioning under the National Payments Corporation of India (NPCI), will recognise all segments of billers who raise repetitive bills as eligible participants voluntarily.

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The RBI’s decision to expand the coverage over all recurring billers is expected to improve the BBPS’s user base. The consumer-friendly and efficient system could soon be a cost-effective alternative for the existing billers.

BBPS is an integrated bill payment system which provides customers with interoperable and easily accessible bill payment services. Customers can make use of the facility, either online or offline. With the system offering multiple modes of payments with instant payment confirmations, BBPS could be a better consumer-friendly alternative to the existing systems.

For any clarifications/feedback on the topic, please contact the writer at viswanathan.v@cleartax.in

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