FREQUENTLY ASKED QUESTIONS
Bharat Bill Payment System (BBPS)
(Updated as on April 16, 2020)
December 27April 15, 2020, 2018
1) What is Bharat Bill Payment System (BBPS) ?
Ans: Bharat Bill Payment System (BBPS) is an integrated bill payment system which will
offers interoperable bill payment service to customers though online as well as through a
network of agents on the ground. The system will provides multiple payment modes and
instant confirmation of payment.
2) Where I can find more details about the BBPS system?
Ans: The policy guidelines for the BBPS system were issued by the Reserve Bank of India
(RBI) on November 28, 2014. The document is available on the RBI website atin the
following link https://www.rbi.org.in/scripts/NotificationUser.aspx?Id=9368&Mode=0.
The BBPS will operates as a tiered structure with a single Bharat Bill Payment Central Unit
(BBPCU) and multiple Bharat Bill Payment Operating Units (BBPOUs).
3) What is Bharat Bill Payment Central Unit (BBPCU) ?
Ans: BBPCU is responsible for undertaking clearing and settlement activities and defining
necessary operational, technical and business standards for the entire system and its
participants. National Payments Corporation of India (NPCI) has been designated as the
BBPCU. There can be only one BBPCU.Bharat Bill Payment Central Unit (BBPCU) will
be a single authorized entity operating the BBPS. The BBPCU willIt is responsible to
undertake clearing and settlement activities and set define necessary operational, technical
and business standards for the entire system and its participants, and also undertake clearing
and settlement activities. As indicated in the circular dated November 28, 2015 National
Payment Corporation (NPCI) has been identified to act as BBPCU. It will be an authorized
entity under the Payment and Settlement Systems Act, 2007.
4) What is Bharat Bill Payment Operating Unit (BBPOU) ?
Ans: Bharat Bill Payment Operating Units (BBPOUs) is an awill rebe authorised
operational entityies authorised by RBI , adhering to the standards set by the BBPCU for
for facilitating bill payments online as well as through a network of agents, on the ground.
There can be multiple BBPOUs.
5) What is the current scope of Bharat Bill Payment System (BBPS) ?
Ans: To start with, the scope of BBPS will covers ed repetitive payments for all biller
categories except prepaid mobile recharges. everyday utility services such asnamely Direct-
to-Home (DTH), electricity, water, gas, telephone and water Direct-to-Home (DTH). On
September 16, 2019Gradually, the scope of BBPS would may bewas expanded to include
all other types of repetitive payments (except prepaid recharge), like school / university
fees, insurance premium, municipal taxes etc.
6) Why iIs mobile prepaid mobile recharge not included in the scope of BBPS
?
Ans: Present scope of BBPS include all types of repetitive payments, except mobile
prepaid recharge.
7) What is the difference between mandatory and voluntary category of
Billers ?
Ans: Five utility services namely Direct-to-Home (DTH), electricity, gas, telephone and
water are included in mandatory biller categories. All other all other types of repetitive
payments (except prepaid recharge) comes under voluntary biller cateogories.
8) Whether it is mandatory for all entities (banks and non-banks) doing bill
payments to apply for authorisation to Reserve Bank ?
Ans: The entities that are providing bill payment facility for five mandatory category of
billers are required to take BBPOU authorisation. For billers of other than mandatory
categories, it is optional to be a part of BBPS or acct outside it.
9) What is the time frame for applying for authorization / approval to become
BBPOU?
The applications for authorization / approval from non-bank entities and banks were
accepted till close of business on November 20, 2015 which was further extended up to
December 18, 2015. On review of system, it has been decided on October 15, 2019 to allow
‘on-tap’ authorisation for entitie9 desirous to operate as BBPOUs. The approval /
authorisation will be granted based on the criteria prescribed in the guidelines referred to at
question 2 above, as also subject to market conditions and the need of the segment.
6) Where can we get more details about the activities of BBPCU and BBPOU
standards?
The prospective applicants for authorization / approval to function as BBPOUs may
approach National Payments Corporation of India (NPCI) for further details on the
Procedural Guidelines and other technical and operational aspects / details.
7) Who should apply for authorisation to become BBPOUs?
Ans: 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 are
mandatorily required to apply for approval / authorisation to Reserve Bank of India under
the Payment and Settlement Systems (PSS) Act 2007.
810) What is the time frame for applying for authorization / approval to the
Reserve Bank of India?
These FAQs are issued by the Reserve Bank of India for information and general guidance purposes
only. The Bank will not be held responsible for actions taken and/or decisions made on the basis of
the same. For clarifications or interpretations, if any, one may be guided by the relevant circulars and
notifications issued from time to time by the Bank.
