21 Jun 2024
Bharat Bill Payment System (BBPS) is an integrated bill payment system backed by the Reserve Bank of India (RBI). Banks can register with BBPS as Agent Institutions (AIs) to use its interoperable and accessible bill payment services.
RBI directed all credit card payments to be done through the BBPS after June 30th. However, only eight out of 34 banks with the permit to issue credit cards have registered on it.
HDFC Bank with 20 million credit cards, ICICI Bank with 17 million, and Axis Bank with 14 million, are yet to register. This can significantly impact fintech players like PhonePe, Cred, Infibeam Avenues, and BillDesk as they will not be allowed to process credit card payments after June 30th.
Among those who have registered are the SBI Card, Bank of Baroda, IndusInd Bank, Kotak Mahindra Bank, and Federal Bank. The industry players have petitioned via the Payments Council of India seeking a 90-day extension.
BBPS is a one-stop portal run by the National Payments Corporation of India (NPCI). It facilitates utility payments and repetitive payments for insurance premiums, credit cards, and mutual funds.