Are you are one of those people who find it difficult to make time for miscellaneous bill payments? Here‘s some good news for you! The Reserve Bank of India has finalized guidelines for the implementation of Bharat Bill Payment System (BPPS) which would act as an anytime, anywhere bill payment system, becoming a one stop shop for all bill payments.
What is ‘Anytime Anywhere Bill Payment’?
Instead of running around multiple payment centers to pay various monthly bills like electricity bill, phone bill, water bill, insurance premium, EMI for cars, users can use any authorized center of Bharat Bill Payment System (BPPS) to pay all these. All public sector banks, cooperative banks as well as private banks would act as a Bharat Bill Payment Operating Units (BBPOUs) which would have the authority to collect payments for various bills on behalf of the Bharat Bill Payment System (BBPS). Other private companies and firms that currently operate as bill payment aggregators would also be included as agents for the Bharat Bill Payment Operating Units, making it convenient for people. A central bill payment system for all monthly bill payments would definitely help today’s working people a lot.
How does it work?
Being an integrated and central system for all bill payments, the implementation of anytime anywhere Bharat Bill Payment System (BBPS) would mean that apart from banks and agent networks part of the BBPS system, other commerce portals and online payment aggregators would also be eligible for bill payments should they choose to be a part of the Bharat Bill Payment System and offer bill collection and payment services to their clients. National Payment Corporation of India (NPCI) would act as the central nodal authority for Bharat Bill Payment System overlooking all complaints as well as audit of payment procedures. The allocation of various Bharat Bill Payment Operating Units (BBPOUs) as per the norms would also come under the jurisdiction of National Payment Corporation of India.
Current Trends and Future
As per latest reports, the top 20 Indian cities generate more than Rs. 3000 Crore worth of bills each year amount to a total payment of approximately Rs. 6 Lakhs Crore annually. The majority of the money is paid as cash, online transfers and as cheques. In order to pertain all records for such bill payments and maintaining a regulated system, the Bharat Bill Payment system would be an effective tool for the government as well as for the end users offering them convenience to use one window to pay all their bills.
With the Reserve Bank of India (RBI) outlining final guidelines for the system, the anywhere anytime banking system or the Bharat Bill Payment System (BBPS) is likely to be implemented in full stream once the back channel works of adhering to various BBPOS guidelines is completed and formalized.
Banking and financial experts believe that the process to set up and build the single window bill payment platform will take at somewhere between one and a half to two years which should also be considered as the estimated timeline by which the Bharat Bill Payment system would be functional for the consumers.
While the BBPS is likely to be initiated with various regular bills issued by government agencies like electricity bill, water bill and other municipal bills including life insurance premiums and loan EMIS, the service may be extended to collect other type of payments like school fee and taxes once the system is operational. BBPS will have a fully structured customer protection and grievance redressal making it a transparent body offering convenience for bill payments for all Indian citizens in the near future.