What is Bharat Bill Payment System (BBPS)?

About Bharat Bill Payment System (BBPS):

• It is a payment channel system conceptualized by the RBI and driven by the National Payments Corporation of India (NPCI), a subsidiary of RBI. 
• It is a one-stop payment platform for all bills providing an interoperable and accessible “Anytime Anywhere” bill payment service to all customers across India with certainty, reliability and safety of transactions.
• The system will provide multiple payment modes and instant confirmation of receipt of payment.
• It is an integrated platform connecting banks and non-banks in bills aggregation business, billers, payment service providers, and retail bill outlets.
• It offers customers the convenience of payment by cataloguing various utility providers on one platform.
• BBPS offers bill collection categories like electricity, telecom, Mobile Post paid, DTH, gas, water bills etc. through a single window.
  • Other types of payments, like school / university fees, municipal taxes/ payments, mutual funds and insurance premium, various government taxes, etc. as decided from time to time by the RBI will be incorporated in BBPS.
• Different Payment Channels:
  • Customers can make payments via physical payment collection outlets (bank branches, agent collection stores etc) and digital channels (apps, websites etc) across India.
  • It provides instant confirmation of payment via an SMS or receipt.

Q1: What is the National Payments Corporation of India (NPCI)?

It is an umbrella organisation for operating retail payments and settlement systems in India. It is an initiative of the Reserve Bank of India (RBI) and the Indian Banks’ Association (IBA) under the provisions of the Payment and Settlement Systems Act, 2007, to create a robust Payment & Settlement Infrastructure in India. It has been incorporated as a “Not for Profit” Company under the provisions of Section 25 of the Companies Act 1956 (now Section 8 of the Companies Act 2013).

Source: Explained | Bharat Bill Payment System – Why RBI wants all payments routed through this system