RBI's (Bharat Bill Payment System) Directions, 2024: A Closer Look

The Directions, which is set to commence from April 01, 2024, marks a significant step towards streamlining and securing bill payment services across the country.

Scope and Applicability

The provisions of these Directions are applicable to:

• NPCI Bharat Bill Pay Limited (NBBL), a wholly owned subsidiary of National Payments Corporation of India

• All Bharat Bill Payment Operating Units (BBPOUs).

Authorization Requirements

NBBL is designated as the authorized Payment System Provider for BBPS, underscoring the need for any entity operating bill payment systems outside BBPS to seek authorization under the Payment and Settlement Systems Act, 2007.

System Participants and Their Roles

The BBPS includes a variety of participants, from the Bharat Bill Pay Central Unit (BBPCU) operated by NBBL to Bharat Bill Payment Operating Units (BBPOUs), including banks, non-bank payment aggregators, and others. These entities will not require separate authorization but must notify the RBI's Department of Payment and Settlement Systems before commencing operations.

• BBPCU: Setting participation rules, technical standards, ensuring transaction settlements, and managing dispute resolution frameworks.

• BOUs: Onboarding billers, ensuring compliance with due diligence, and managing the integrity of transactions.

• COUs: Providing interfaces for bill payments, ensuring access to all billers in BBPS, and handling disputes and agent institution activities.

Financial Management

Non-bank BBPOUs are required to open escrow accounts with Scheduled Commercial Banks, specifically for BBPS transactions, ensuring the secure and efficient handling of funds between customers and billers.

Complaint Management and Grievance Redressal

A centralised dispute resolution framework will be managed by NBBL, integrating COUs and BOUs to facilitate efficient and timely resolution of customer and biller disputes, leveraging the BBPS reference number for each transaction.