Understand RBI’s New Rules for Credit Card Bill Payments via Bharat Bill Payment System
Understand RBI’s New Rules for Credit Card Bill Payments via Bharat Bill Payment System
RBI’s new regulation for credit card bill payments via Bharat Bill Payment System (BBPS) aims to centralize and streamline the process for enhanced security and control.
Starting July 1, the Reserve Bank of India (RBI) has mandated that all banks process credit card bill payments through the Bharat Bill Payment System (BBPS). Developed by the National Payments Corporation of India (NPCI), BBPS is a unified platform designed to handle all forms of bill payments across the country. This move by the RBI aims to tighten regulations, centralize and streamline the bill payment process, bringing significant changes to how banks and payment apps handle credit card transactions.
We are glad to announce that @HDFC_Bank credit card bill payments are now available on BBPS! Enjoy a seamless and convenient payment experience.#HDFCBank #BBPS #BillPayments #Convenience #DigitalBanking
— Bharat BillPay (@BharatBillPay) July 10, 2024
Bharat Bill Payment System (BBPS), a platform operated by the National Payments Corporation of India (NPCI), on Wednesday (July 10) said HDFC Bank credit card bill payments are now available on BBPS. However, many customers will find that their banks are not yet active on this system, affecting their ability to use popular third-party apps like CRED and PhonePe for their credit card payments.
As of now, 12 banks are operational on BBPS for credit card bill payments. Major players like Yes Bank, and IDFC First Bank are still in various stages of integration. The shift to BBPS is expected to enhance security, reduce fraud and standardize grievance redressal processes by routing all credit card bill payments through this centralized network.
Presently, credit card bill payments via apps are typically settled through the Immediate Payment Service (IMPS) or directly with the bank. The new regulation ensures all such transactions flow through the centralized BBPS network. From a consumer perspective, the change will be largely seamless. Consumers can continue to pay their credit card bills through auto-debit facilities, net banking (NEFT or IMPS), or third-party apps like Cred, Amazon Pay, and PhonePe. While the backend processing will shift to BBPS, the front-end experience for consumers will remain largely unchanged until all banks go live on BBPS.
The real challenge lies with the banks that have yet to integrate with BBPS. Once banks go live on BBPS, the backend channels for payment processing will shift, potentially posing some initial integration hurdles. However, in the long run, this transition is expected to streamline and standardize credit card bill payments, bringing a higher level of security and control over these transactions.
