Bharat Bill Payment System

30th March, 2016

Bharat Bill Payment System

Bharat Bill Payment System

It is an integrated bill payment system which will offer interoperable bill payment service to customers online as well as through a network of agents on the ground. 

The system will provide multiple payment modes and instant confirmation of payment.

Nodal Agency:

National Payment Corporation (NPCI) will be an authorized entity under the Payment and Settlement Systems Act, 2007.

Structure:

Bharat Bill Payment Central Unit (NPCI)  - will set necessary operational, technical and business standards for the entire system and its participants, and also undertake clearing and settlement activities.

Bharat Bill Payment Operating Unit - authorised operational entities, adhering to the standards set by the BBPCU for facilitating bill payments online as well as through a network of agents

Scope:

It will cover repetitive payments for everyday utility services such as electricity, water, gas, telephone and Direct-to-Home (DTH). Gradually, the scope would be expanded to include other types of repetitive payments, like school / university fees, municipal taxes etc.

Eligibility:

Banks and non-bank entities presently engaged in any of the above bill payment activities falling under the scope of BBPS and desirous of continuing the activity.

Additional Criteria for non-bank entities:

• The entity should be a company incorporated in India and registered under the Companies Act 1956 / Companies Act 2013
• The Memorandum of Association (MOA) of the applicant entity must cover the proposed activity of operating as a BBPOU
• The applicant entity should have a net worth of at least Rs.100 crore as per the last audited balance sheet and the same has to be maintained at all times.
• In case of any Foreign Direct Investment (FDI) in the applicant entity, necessary approval from the competent authority as required under the policy notified by the Department of Industrial Policy and Promotion (DIPP) 
• The company must have domain experience in the field of bill collection/services to the billers, and relevant experience in transaction processing for a minimum period of one year.

Based on:

Based on the Feasibility of Implementation of GIRO based Payment Systems.