RBI introduces revised Bharat Bill Payment System guidelines 2024: Check details
Upstox
2 min read • Updated: March 1, 2024, 5:16 PM
Summary
The revised Bharat Bill Payment System directions will streamline the process of bill payments, enable greater participation, and enhance customer protection among other changes. These Directions shall be applicable from April 01, 2024.
The Reserve Bank of India (RBI) has issued crucial directions under the Payment and Settlement Systems Act, 2007, pertaining to the Bharat Bill Payment System (BBPS). These directions aim to streamline and regulate the bill payment ecosystem for the public interest.
Effective date and applicability
Termed as the Reserve Bank of India (Bharat Bill Payment System) Directions, 2024, these guidelines will come into effect from April 01, 2024. They are applicable to NPCI Bharat Bill Pay Limited (NBBL) - a wholly owned subsidiary of the National Payments Corporation of India - and all Bharat Bill Payment Operating Units (BBPOUs).
Authorisation Requirement
NBBL is designated as the payment system provider for the Bharat Bill Payment System (BBPS). Additionally, entities operating bill payment systems outside the BBPS framework will require authorisation under the Payment and Settlement Systems Act, 2007.
Participants and definitions
The participants in the BBPS ecosystem include the Bharat Bill Pay Central Unit (BBPCU), Biller Operating Units (BOUs), Customer Operating Units (COUs), and other entities such as Agent Institutions (AIs) and Technology Service Providers (TSPs). These entities have specific roles and responsibilities outlined in the directives.
Roles and responsibilities
The BBPCU, operated by NBBL, is tasked with setting operational standards, providing settlement services, and ensuring consumer dispute resolution. BOUs are responsible for onboarding billers and ensuring compliance with due diligence requirements. COUs provide interfaces for customers and handle dispute resolution processes.
Escrow account operations
Non-bank BBPOUs are required to maintain escrow accounts exclusively for BBPS transactions, with specific guidelines for fund management and reconciliation.
Complaint management and grievance redressal
NBBL will establish a centralised dispute resolution framework in compliance with RBI guidelines. COUs and BOUs must integrate with this framework to facilitate seamless dispute resolution for customers and billers.
Supersession of earlier guidelines
The revised guidelines supersede previous guidelines and circulars related to BBPS issued by RBI.