RBI constitutes GAG to implement a national GIRO-based Indian Bill Payment System

The Reserve Bank of India had announced the constitution of a GIRO Advisory Group (GAG) under the chairmanship of Prof. Umesh Bellur, Indian Institute of Technology, Bombay to implement a national GIRO-based Indian Bill Payment System. The GAG submitted its report on March 20, 2014 to the Reserve Bank of India. The GAG has observed that bill payments landscape in the country are mostly biller-specific and thus do not provide an environment to customers to make bill payments through an inter operable system in a seamless and efficient manner at many of the agent / customer service points that exist today. These gaps in delivery of services in large parts of the country thus present an opportunity, as well as potential, for the creation of a centralised bills payment system in the country.

The GAG had interacted with various stakeholders / institutions from the bill payments industry and many organisations with experience and expertise in the area of bill payments. Based on these deliberations, the GAG examined multiple options that are available to establish and run such a system in the country and recommended a tiered structure where the Bharat Bill Payment Services (BBPS) will be the authorised standard setting body (also handling settlement functions) while the Bharat Bill Payment Operating Units (BBPOUs) will be the authorised operational units, working in adherence to the standards set by the BBPS.

The BBPS will function as a 'not-for-profit' organisation which has necessary experience in the payment systems space, while the BBPOUs may be operated on commercial lines by existing entities in the bill payments space as well as new entities interested in this segment. The BBPS will also handle the settlement responsibilities arising out of the transactions in the system.

All the entities in this tiered structure will operate under the uniform and single brand of the BBPS. This will also ensure a uniform dispute resolution and customer grievance redressal mechanism, thereby building trust and confidence in such a centralised bill payment system.

Powered by Capital Market - Live News