The government will use the Bharat Bill Payment System or BBPS Also, the Bankers Association of India (Iba) When National Payment Corporation of India (NPCI) is reviewing and calling for action against errant players, said a government official aware of the issue.
“Relevant authorities have already issued orders. The IBA can conduct further reviews and propose course corrections if necessary.” UPI is a digital public good and its services are free. UPI and aadhar compliant payment systems or AEPS are part of the payment modes of BBPS.
Last month, some payment apps began charging a platform fee for bill payments through BBPS. In response, the NPCI, the umbrella organization that operates retail payments and payment systems in the country, objected and directed the platform to stop charging fees.
In a tweet about UPI, the government also noted that service providers’ concerns about cost recovery need to be addressed by other means. “This is also the case for BBPS,” said the official, adding that the government is pushing digital payments and that such fees could be restricted.
This is because banking regulators Reserve Bank of Indiaproposed to allow BBPS to accept cross-border inward payments.BBPS is owned and operated by NPCI Bharat BillPay Ltd. (NBBL).
BBPS provides a one-stop bill payment solution for all recurring payments by utility billers such as electricity bills in addition to loan repayment, insurance and FASTag Recharge across India.
Two major players in the ecosystem, PhonePe and Paytm, have already said they have stopped charging.
A Paytm spokesperson said, “Following NPCI’s instructions, we have immediately stopped charging BBPS billers for platform fees on Paytm.” He added that they are conducting experiments to Use Cases, and Payment Methods.
PhonePe also said it has suspended PF for all billers and categories routed via BBPS. “BBPS billers and their associated fees are governed by BBPS guidelines. There are some categories that do not exist in BBPS or have limited scope for billers, in which case there are separate commercial arrangements. said Phonepe. The spokesperson added that NPCI is considering whether to introduce standardized platform fees at the ecosystem level. “We will wait for their instructions and proceed accordingly,” he added.
Reserve bank of india Allow BBPS to accept cross-border domestic payments to facilitate non-resident Indians (NRIs) to pay utility, education and other bills on behalf of their Indian families “This will also help pay bills that are on board the BBPS platform in an interoperable manner,” it said.