India consolidates bill payment system
India consolidates bill payment system
Reserve Bank of India (RBI), the country’s central bank and regulator, has given National Payments Corporation of India (NPCI) the go-ahead to consolidate payment of local utility and services bills.
NPCI will now function as the Bharat Bill Payment Central Unit (BBPCU) and operate the Bharat Bill Payment System (BBPS) – processing nearly 450 million bills generated by the country’s service providers.
BBPS has onboarded 42 large billers as of now, from five utility sectors.
NPCI has also started certifying payment units, known as Bharat Bill Payment Operating Units (BBPOUs), to facilitate the payment of bills via the BBPS. At present there are 24 such units, of which ten are private banks, five are co-operative banks, and six are non-bank bill aggregators.
Public sector banks, like the State Bank of India and Canara Bank, haven’t registered as BBPOUs as yet. However, NPCI believes public sector banks will join in soon – and expects it to make the BBPS a stronger initiative.
By Soumik Roy, editorial contributor to Banking Technology
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