Reserve Bank of India (RBI) issued revised regulatory framework of the Bharat Bill Payment System (BBPS)

Posted 01 Mar 2024

Updated 27 Mar 2024

2 min read

RBI has revised the framework in exercise of powers conferred by the Payment and Settlement Systems Act, of 2007.
The revised framework seeks to streamline the process of bill payments, enable greater participation, and enhance customer protection.

About BBPS: It is an integrated online platform that is being developed by the National Payments Corporation of India(NPCI) for all kinds of bill payments.
- It intends to build an interoperable service through a network of agents, enabling multiple payment modes along with instant generation of receipts of payments.
- Operates as a tiered structure with NPCI Bharat Bill Pay Ltd (NBBL) as a Central Unit (BBPCU), and Bharat Bill Payment Operating Units (BBPOUs) as operational units.
  - A BBPOU may function either as a Biller Operating Unit(BOU) or a Customer Operating Unit(COU) or both.

Regulatory framework of BBPS
- Enable non-bank payment aggregators (PAs) to participate in the system as operating units.
- BBPCU will set the rules and regulations governing participation criteria and system operations, in addition to the technical standards for participation in the system
- COU will provide digital or physical interface to their customers
- BOU will be responsible for onboarding billers to BBPS.

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