RBI makes changes in Bharat Bill Payment Systems

The Reserve Bank of India has made changes to the Bharat Bill Payment Systems (BBPS) to let non-bank payment aggregators join in. The aim is to encourage more people to take part in the system.

BBPS is a system where people can pay their bills using different methods like mobile apps, bank branches, and more. They can use methods like UPI, internet banking, and prepaid payment instruments (PPIs) to pay bills.

Now, the RBI says that companies authorized to be PAs, including those who got a preliminary authorization, can join BBPS. These changes will start from April 1 this year and are called the Reserve Bank of India (Bharat Bill Payment System) Directions, 2024.

The RBI said there were big changes in the payment system, so they needed to update the rules. They made this decision after talking about it in a statement on June 8, 2023. They called the new rules the Bharat Bill Payment Systems Directions, 2024.

Right now, 18 companies like Razorpay, Cashfree, Amazon Pay, and more got final approval from RBI to be payment aggregators. Also, 32 companies got a preliminary authorization.

A person who knows about these changes said that RBI is letting all PAs join BBPS without needing any extra licenses. PAs can join the bill payment system without any extra authorization.