BBPS – Bharat Bill Payment System
BBPS (Bharat Bill Payment System) is an initiative of RBI to facilitate Indian consumers to pay their bills. Bharat Bill pay is used to pay bills anytime, anywhere. It is aggregated ecosystem which enable customer to pay their bills. It was founded in 2013.
Customers can do transactions with Bharat Billpay integrated channels. Nowadays many Banking and Non-Banking institute offer Bharat Billpay for bill payment facilities. You can use SBI billpay, Paytm, Phonepe and many more BBPS partners to use Bharat Billpay.
NPCI is the owner of the Bharat Bill Payment System. National payments corporation of India is authorized by the Reserve Bank of India to set the business standard for Bharat Bill Payment System. It also set rules and procedures for BPPS. The functions of NPCI are shown below,
- Undertake clearing activity related to Transactions
- Undertake Settlement activity of transactions
- Set rules and procedures
- Set Business Standard for NPCI members
- Facilitate seamless payment of bills through any channel. It can be a digital channel or physical channel.
- Enable Standardized system to handle customer grievances
- Facilitate customer for disputed matters
Bharat BillPay transaction can be initiated through Internet, Internet Banking, Mobile, Mobile-Banking, POS (Point of Sale terminal), Mobile Wallets, Kiosk, ATM, Bank Branch, Agents, and Business Correspondents.
Customer can pay their bills by their bank account, UPI system, Transfer cheque, Net Banking, Mobile Banking. Retail Bill payment system is needed to pay bills. Earlier customer was forced to pay their bills only from authorized payment collection offices. Earlier Customers can’t pay their bills online. BBPS enables the customer to pay their bills online. The amount of this transaction may be small but total amount is big number.
According to RBI, Top 20 cities generate more than Rs 600000 Crore in bill payment. Most customers pay their bills by cash and cheque. So there was a need for an online payment system. So if there is a system that enables user to pay their bills anytime, anywhere then it will facilitate the customer to pay their bills easily. BBPS is an integrated bill payment system in the country.
NPCI works as Bharat Bill Payment Central Unit. Bharat Bill Payment Central Unit is medium which connects user, banking institute, nonbanking institute, And Biller. BBPCU set standard, and ensure transaction security for Bill payment. BBPS enable customer for their transaction facility, security, reliability.
Customers can pay their electricity bill, Telecom Bills (Mobile Post-paid, Landline Post-paid and Broadband), DTH Bill, Gas-Pipeline and LPG Bill, Water Bill with use of Bharat Bill Payment System.
NPCI is working to include insurance premiums, mutual funds, school fees, institution fees, credit cards, local taxes, invoice payments in the Bharat Bill Payment system in the future.
Que 1: What is the full form of BBPS?
Ans 1: The full form of BBPS is the Bharat Bill Payment System. It is an ecosystem to pay your bill anywhere, anytime. It is an integrated ecosystem.
Que 2: What is the full form of NPCI?
Ans 2: The full form of NPCI is the National Payments Corporation of India. National Payments Corporation of India functions as the authorized Bharat Bill Payment Central Unit, which will be responsible for setting business standards, rules, and procedures for technical and business requirements for all the participants.
Que 3: What is Bharat Bill Payment Operating Unit?
Ans 3: Bharat Bill payment operating unit is authorized by The reserve bank of India for the Bill payment system. It can be Banking Institute, Non-Banking institute. BBPOU integrate with customer or Biller or with both for Bill payment ecosystem. Bharat Bill Payment Operating unit is integrated with Consumers and Billers.
Que 4: Which type of Bills can be paid with BBPS?
Ans 4: Electricity bill, Telecom Bills (Mobile Post-paid, Landline Post-paid and Broadband), DTH Bill, Gas-Pipeline and LPG Bill, Water Bill can be paid with the use of Bharat Bill Payment System.
Insuregrams is an education blog. We made available information on BBPS( Bharat Bill Payment System) for UPSC students. It will cover most information related to BBPS.