Bharat Bill Payment System

Bharat Bill Payment System

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https://www.fundstiger.com/bharat-bill-payment-system/
Bharat BillPay enables every citizen to pay their different bills under the same window. This unified ecosystem brings banks, non-banks and online payment platforms under one roof as its official authorised units for bill collections.
RBI to cover all repetitive bill payments under Bharat Bill Payments System
You will soon be able to make all bill payments, except prepaid recharges, using the Bharat Bill Payment System (BBPS) after the Reserve Bank of India (RBI) gave its nod.
The Reserve Bank of India on 7August19 said it will allow all categories of billers except prepaid recharges under the Bharat Bill Payment system (BBPS). The BBPS currently covers billers in five segments, DTH, electricity, gas, telecom and water bills. The regulator is expected to issue detailed instructions in this regard by the end of September 2019.
“To leverage the advantages of the BBPS and harness its full potential, it has been decided to permit all categories of billers (except prepaid recharges) who provide for recurring bill payments to participate in BBPS on a voluntary basis,” the RBI said. So far, BBPS, an interoperable platform for repetitive bill payments, is used to make five types of bills — direct-to-home (DTH), electricity, gas, telecom and water bills.
Apart from digitisation of cash-based bill payments, these segments would also benefit from the standardised bill payment experience for customers, centralised customer grievance redressal mechanism, prescribed customer convenience fee.
The regulator also allowed on-tap authorisation of retail payment systems to companies looking to function as BBPOU, TReDS and white-label ATMs. Instructions to this effect will be issued by the end of September 2019.
In order to diversify risks and encourage innovation and competition, the RBI has decided to offer ‘on tap’ authorisation to entities desirous to function/operate/provide platforms for Bharat Bill Payment Operating Unit (BBPOU); Trade Receivables Discounting System (TReDS) and White Label ATMs (WLAs).
The on-tap facility is aimed at encouraging more players to participate in pan India payment platform.
Bharat Bill Payment Central Unit (BBPCU)
National Payments Corporation of India (NPCI) will function as the authorized Bharat Bill Payment Central Unit (BBPCU).
  • BBPCU will be responsible for setting business standards, rules, and procedures for technical and business requirements for all participants.
  • The Bharat Bill Payment System (BBPS) will function as a tiered structure for operating the bill payment system in the country under a single brand image.
  • BBPCU will also undertake clearing and settlement activities related to OFF-US transactions.
  • BBPCU will have a dispute resolution mechanism to handle all disputes arising between participants and also an end-to-end consumer complaint grievance redressal mechanism to resolve all consumer complaints regarding payment of bills.
Functions of BBPCU
  1. Set Standards: Business, Process and Procedures
  2. MIS & Fraud & Risk Management
  3. Marketing and Brand Positioning of Bharat BillPay
  4. Dispute management system for BBPOUs
  5. Settlement of BBPOUs for OFF-US transactions
  6. On boarding of BBPOUs
  7. End-to- End Complaint Management System for Consumers
Who Is A Biller?
Billers are the service providers who collect payments from customers and participate in the Bharat BillPay through BBPOU.
The category of billers participating in Bharat BillPay will be specified from time to time.
Types of Billers
1. Online-Mode
When Biller is connected online to respective BBPOU and all the communications between Biller and BBPOU is happening on real-time basis. At the time of fetching the bill, BBPOU will pass the required information to the biller and get the response on real time. BBPOU will confirm the bill payment only after getting confirmation from respective biller.
2. Offline-Mode (A)
When the biller is not connected to the BBPOU on real time basis and provides a file of expected bills on regular basis to respective OU. BBPOU will confirm the bill payment on the basis of the bill information dump provided by the respective biller.
3. Offline-Mode (B)
When the biller is neither connected to the BBPOU on real time basis nor provides any file. In this scenario, the BBPOU receives all the bill payment requests for that particular biller without any validation.
Benefits to the Biller
  • Lower Capital expenditure and Operational expenditure due to reduced investments.
  • Wider reach through different channels.
  • Improved liquidity position due to faster payment collection.
  • No need to integrate with multiple BBPOUs.
  • Low entry barriers for small billers or ones confined to small geographies.
  • BBPS guarantees payment information and multiple settlement of payment transactions at designated intervals through authorized entities. This ensures that there is no separate need for bank guarantees.
  • Ensure a responsive grievance redressal system (CMS and DMS) that will make the system more responsive and gradually error free.
  • Sufficient business and technical MIS that may help in analyzing consumer behavior and system performance of biller partner.
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