BBPOU authorisation applications under process: RBI

The Reserve Bank today said it is processing applications of entities for authorisation to operate as Bharat Bill Payment Operating Unit (BBPOU) and conveying directly to those getting in-principle approvals.
"These applications are being processed and the Reserve Bank has commenced communicating the decision directly to the applicants," the RBI said in a release.
Further, it said 'in-principle' approvals to operate as BBPOU are conveyed where the applicants meet all the eligibility requirements including existing net worth and requisite billing experience.
Billing experience for eligibility as a BBPOU does not include activities in which the applicant is only a front-end of a bill aggregator and does not have tie-up with billers, the apex bank said.

The RBI also said it has received a large number of applications, so it is processing in order of receipt of full information from the applicants.
The RBI had invited applications from banks and non-banks for authorisation or approval as Bharat Bill Payment Operating Unit (BBPOU).

As on extended date of December 18, 2015, the RBI said it received, in all, 62 applications from non-banks and 80 approvals requirements from banks to get the authorisation.
The Bharat Bill Payment Operating Unit (BBPOU) is conceptualised as an electronic GIRO payment system to enable a pan-India touch points for bill payments by customers in the country, irrespective of the geographical location of the billers.

The need for an integrated bill system was felt as the existing systems do not fully address the needs of the consumers to pay a variety of bills such as utility bills, school/university fee, municipal taxes.
India lacks interoperability in the bill payment processes and a vast majority of customers do not have access to various modes of electronic payments.
According to RBI data, bill payment is a major component of the retail payment transactions in India. As per its 2013 report, over 30,800 million bills amounting to Rs 6,223 billion were generated each year in the top 20 cities in the country.

The RBI said various forms of payments are accepted in India, though cash and cheque payments continue to be predominant.