With the intent to standardise and spread the power of bill payments and access to entire ecosystem, RBI conceptualized BBPS, Pay bills Any time Anywhere system, on GIRO (General Interbank Recurring Order) based payment system.
NPCI was given the onus to develop, control and operate the integrated bill payment system offering interoperable and accessible bill payment service to customers through a network of agents, enabling multiple payment modes, and to provide instant confirmation of payments.
Last year RBI gave in-Principle approval to various Bank and Non bank entities including Spice Digital Ltd (Spice Money) to operate and appoint agent institutions (AI) to run the BBPS. After reviewing the work and capabilities RBI has awarded final license to SDL’s Spice Money to work as Bharat Bill Payment Operating Unit (BBPOU) and be part of its prestigious BBPS.
To understand the importance of BBPS and role of various participants in the system it is imperative to see the flow of its payments and settlement system.
The BBPS operation model
Figure 1 : NPCI BBPS Presentation
Key Features of BBPS
|Inter-operable||BBPS will be an integrated platform connecting banks and non-banks in bills aggregation business, Billers , payment service providers and retail bill outlets|
|Accessible||Facilitate seamless payment of bills through any channel : Digital and physical|
|Cost-Effective||Most cost-effective for entire ecosystem|
|Integration||BBPOUs will have to connect only to BBPCU to get access to all the billers. Utility companies just need to connect to maximum two BBPOUs to enable all customers to pay bills|
|Complaint Management||Standardised system to handle customer grievances for both ON-US and OFF-US transactions|
|Dispute Management||Facilitate BBPOU’s to raise and resolve disputes relating to transactions that have passed through the BBPS system|
|Clearing and Settlement||Multiple Clearing & Guaranteed Settlements between different parties, standardised TAT|
|Standardisation||Standardisation of processes for entire BBPS ecosystem|
|Brand Connect||Single and trusted brand connect and BBPS Assurance|
Figure 2: BBPS Product Presentation
BBPS is a system in which only defined licensed participants can operate and transact, hence all the bill payment service providers who wants to offer and accept bills as service have to come on board after the RBI’s deadline, and only these participants will be allowed to process bill payments and settlements in the system.
Companies (Established or Start Ups) who wish to operate and offer the bill payments service to their customers will have to get in touch with licensed BBPOUs like SDL (Spice Money, which has got the RBI license to operate as BBPOU in August 2017) and become their Agent Institutions (AI) / Partner Institution. Spice Digital can extend this service to any partner institutions through API (Application Programming Interface) or through deep integration directly with their Web Portal or Mobile application for both B2B (Business to Business) or B2C (Business to Customer) interface.
This will help the partner institution to get associated with SDL, which is a valued brand in the Digital Payments space. They can earn more from their retail outlets through this service and increase their product bouquet for last mile delivery.
If you are interested to be part of the Bill Payment Platform BBPS through Spice Digital and offer bill payment service through your retail outlets write to us at firstname.lastname@example.org