 "Liquidity management tool: RBI may have to balance old norms with the new")
The RBI has decided to cover all repetitive bill payments under the Bharat Bill Payment System (BBPS) and a detailed guideline in this regard will be issued by September-end.
Currently, repetitive bill payments cover five segments -- direct-to-home, electricity, gas, telecom and water bills under the BBPS -- which is an inter-operable platform.
"In order to leverage the advantages of the BBPS and harness its full potential, it has been decided to permit all categories of billers (except prepaid recharges) who provide for recurring bill payments to participate in BBPS on a voluntary basis," the RBI said in 'Statement on Developmental and Regulatory Policies' post the monetary policy review.
Apart from digitisation of cash-based bill payments, these segments would also benefit from the standardised bill payment experience for customers, centralised customer grievance redressal mechanism, prescribed customer convenience fee and the like, the Reserve Bank of India said.
The detailed instructions in this regard will be issued by the end of September 2019.
It further said that in order to diversify risks and encourage innovation and competition, the RBI has decided to offer 'on tap' authorisation to entities desirous to function/operate/provide platforms for Bharat Bill Payment Operating Unit (BBPOU); Trade Receivables Discounting System (TReDS) and White Label ATMs (WLAs).
The on-tap facility is aimed at encouraging more players to participate in pan India payment platform.
