India’s central bank, the Reserve Bank of India has recently issued an order, which now mandates that all credit card payments will now go through Bharat Bill Payment System (BBPS) after June 30.
Thus, affecting major companies like PhonePe, Cred, BillDesk and Infibeam Avenues, as these fintech companies, will not be able to process payments on credit card dues just after June 30. Now, lenders need to comply with the rule by the above-mentioned date to operate seamlessly.
As a result, the payment is now seeking the extension of deadline by 90 days. ‘The payments industry has sought extension of the deadline by 90 days.’ said chief of big payment company (quoted by ET).
According to ET report, out of 34 banks, only 8 banks have started issuing bill payments on BBPS.
The banks who have activated the BBPS are SBI Card, BoB Card, IndusInd Bank, Federal Bank, and Kotak Mahindra Bank.
Currently, big banks like HDFC, ICICI and Axis Bank have not yet activated BBPS. And so far, it has provided combined 5 crore credit cards to customers.
Why RBI Has Centralized Credit Cards Payments
According to industrial experts, this rule is supposed to give RBI a 360 view and better visibility on payment trends.
Besides, better visibility, this will allow RBI to properly track and solve fraudulent transactions.
What Is Bharat Bill Payment System?
Bharat Bill Payment System refers to an integrated online platform, which was developed by National Payments Corporation of India.
This platform functions as one-stop system for payment of all bills. Thus, providing interconnected and accessible ‘Anytime Anywhere” Bill payment service’ to customers of India.