Given the coronavirus pandemic and to ensure safe banking, the Reserve Bank of India (RBI) has extended the digital banking facilities round the clock. The measures are in line with promoting minimum handling of cash and avoiding social contact.
The non-cash options for payment such as NEFT, IMPS, UPI and BBPS are made available round-the-clock for fund transfers, paying utility bills and for purchase of goods and services. The measures are put in place after the Government of India issued an advisory against social contact. All state governments are requested to take social distancing measures until 31 March to prevent the spread of the virus.
The press release of RBI indicates that the public can use the digital payment options from the convenience of their home through netbanking, mobile banking and card transactions. The statement also states that the measures seek to avoid visiting public places and social contact for the purchase of goods/services, money transfers or payment of bills.
BBPS refers to Bharat Bill Payment System, which facilitates payment of repetitive bills such as electricity, gas, water, telephone and, so on. UPI enables a real-time transfer of funds between two bank accounts using a mobile platform.
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I am a Chartered Accountant by profession. I specialise in personal taxes and corporate income tax matters. I am an avid reader and track developments in financial markets, economy and other market developments.