Visiting all the billers’ websites one by one in order to pay the bills is a rather hard and time-consuming activity, stealing lots of precious moments from your daily routine. Bharat Bill Payment System, or simply, BBPS, facilitates many chores in your life. Read on to know how BBPS is making the lives of millions of Indians easier and hassle free every day. Bharat Bill Payment System is a digital system introduced by the Reserve Bank of India (RBI) and managed by the National Payments Corporation of India (NPCI).
BBPS is an integrated and easy-to-use interoperable software system, which means it is a bill payment service designed to bring safety and reliability to transactions in the lives of consumers located in any part of the country. The BBPS payment system represents a network of about 70 banks, more than 10 payment applications, and about three lakh retail agents.
Types of bill payments on BBPS
BBPS has been especially designed to have a wide range of billers. Users can pay different types of bills through the BBPS platform.
Using BBPS, you can make payments for bills like electricity, internet, telecom, DTH, school fees, municipal taxes, EMIs, hospital bills, insurance premiums, recurring deposits, and much more. In all, BBPS is a a super convenient digital platform for your billing requirements.
Here is a list of the billers on the BBPS payment system –
Housing & Utilities
- Municipal tax
- Housing society maintenance
- Piped gas
- Rent
- Electricity
- Water
- LPG
Communication
- Landline postpaid
- Mobile prepaid
- Mobile postpaid
Travel
- FASTag
- National Common Mobility Card (NCMC)
Finance
- Loan repayment
- Credit card payments
- Insurance
- Recurring deposits
- Education
- Fees
- National Pension System
Entertainment
- Broadband postpaid
- Cable TV
- DTH
- Subscriptions
Health
- Hospitals and pathology
The Need for BBPS
The BBPS payment system was launched in October 2017, with the pilot phase beginning in August 2016. The Reserve Bank of India noted the need for an integrated bill payment system in India, which provides an integrated and widely-accessible bill payment service to customers.
They envisioned it as a network of agents that allows multiple payment modes and offers instant payment confirmation to the customers.
Being a cost-effective and technologically efficient platform, it was planned to be an alternative to all the existing systems. Therefore, BBPS set a unique standard for bill payments in India and won the trust of the users and enhanced their overall experience.
But how does BBPS work? Under one brand identity, the Bharat Bill Payment System operates as a systematic tiered structure for bill payments in India, allowing customers with the convenience of ‘anytime’ and ‘anywhere’ bill payments. The two key elements of the BBPS payment system are the two entities that perform distinct functions.
They are –
Bharat Bill Payment Central Unit (BBPCU): BBPCU is a single authorized entity that operates the BBPS and sets the required technical, operational, and business standards for the whole system. It also carries forward the clearing and settlement activities.
Bharat Bill Payment Operating Units (BBPOUs): BBPOUs are the designated operational units functioning according to the standards brought into action by BBPCU. The functional network/s of effective agents from BBPOUs is further reinforced within the systematic framework of BBPCU. However, only one BBPCU will be present, yet, there might be several BBPOUs conducting businesses under the aegis of the BBPS.
Here are the step by step process in BBPS payment system –
Step 1: A consumer pays using a channel that can be a website, net banking interface, agents, retail shops, non-banks interface, mobile applications of banks, or non-banks.
Step 2: BBPCU collects the amount through debit and gathers information from the bank/non-bank.
Step 3: BBCPU conducts settlement between BBPOUs and transfers bill information and payment messages.
Step 4: Lastly, a utility-connected bank or non-bank entity transmits data to utilities and credit accounts.
Advantages of BBPS
The following are some of the most important characteristics of BBPS that makes it a crucial aspect of the life of consumers-.
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Advantages of BBPOU
Interoperable
BBPS is an integrated system connecting all banks and non-banks into bill aggregation. Bill payments via BBPS is all about a service through which consumers can pay their bills on one platform through wide networks of digital channels like internet banking or mobile apps. The BBPS is helpful in making the society less cash dependent through the migration of bill payments from cash to the digital mode.
Reach
BBPS has expanded its reach to a wider base of customers through OFF-US business.
Value added services
BBPS payment system has the potential to offer value-added services, such as online presentment
Interface
BBPS boasts of a standard and user-friendly interface.
Timely and guaranteed settlement
Bill payments with BBPS have a timely and assured settlement
Efficient system
BBPS efficiently manages the system with bulk payments, swift buyer and supplier handling, while keeping digital records to bring down the cases of disputes.
Only verified entries
Discover a ready pool of verified entities with the ability to assess their digital invoicing and payment behaviour via a ‘trade credit score’ that minimizes background checks on your part.
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Benefits to Billers:
Cost-effective medium
BBPS offers a cost-effective solution to bill payments.
Unified communication
The BBPS payment system helps a user to have real-time payment updates with synced invoices and thus decreases the number of missed dues on payments.
Transparent tracking
BBPS makes sure that the user makes the transaction in a safe environment with proper security measures. This brings confidence among them and encourages them to use digital platform for their bill payment requirements.
Better liquidity
Billers obtain a better liquidity position because of faster settlement of bills.
Easy access
Even for small billers or those whose operations are confined to small geographies, entry is low.
Plug-and-play connectivity options
Billers can easily connect to a system in a simple and flexible manner through two standard APIs, or Application Programming Interfaces. The standard APIs ensure uniformity in how the various billers interact with the payment system.
Lower CAPEX and OPEX
The BBPS payment system has significantly reduced capital expenditure and operational expenditures.
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Benefits to Customer
Accessible
The BBPS system is easily accessible to any person having a stable internet connection. The system is accessible and easy to use for residents in India from anywhere in the country.
Convenience
It helps in adopting the dream of the Government of India towards the Digital India concept. It offers convenience and flexibility of payment channels to the users so that they can make payments at any time and from anywhere. One can settle their bills with their smartphone on one platform, whether sitting at home or on the move.
24/7 available
The system is available 24/7 so that the customers can pay the bills at any time which may be suitable for their convenience.
Trustworthy
The BBPS offers the most trustworthy and safe service regarding payments, hence enhancing trust during a transaction.
Ease of Payments
Payment receipts may easily be availed for settlement in case of an invoice from BBPS besides all details concerning the collection.
Financing Gets Better
BBPS is, therefore, the perfect system to have banks or financiers have access to a comprehensive database of buyer-approved invoices and transactions. As such, BBPS will be instrumental in giving businesses competitive lending rates.
BBPS with Religare
You can become a BBPS agent with Religare Digital and provide the fastest and most secure bill payment service to your clients via the Bharat Bill Payment System. Whether it is about utility bill payment, or mobile connection recharge, or a smooth management of tax payments and other financial services, Religare promises an integrated solution for every kind of financial need from the clients’ end.
Frequently Asked Questions about Bill Payments with BBPS
What payment modes are available on BBPS?
One can access various payment options on BBPS. The BBPS payment ecosystem brings together several payment modes such as credit cards, debit cards, prepaid cards, Aadhar-based payments, NEFT, UPI, internet banking, wallets and cash.
How do I pay my bill online using BBPS?
To use BBPS to make a digital payment for your bills, your agent will log into your partner bank application or Bharat Connect platform. They will fill in the category of Biller, the name of the biller, and the reference number of the bill. All details must be verified and the amount to be paid is entered. Then, a choice of the desired payment option available on BBPS is made. Finally, you receive a confirmation for the transaction.
How much does BBPS charge?
Currently, no extra charges apply to the process of online transactions via BBPS.
How is BBPS different from UPI?
BBPS is not like UPI. Although both are digital payment systems operational in India, they play different roles. BBPS works as a unified platform for all kinds of bill payments; on the other hand, UPI is an app-based payment system that works real-time and carries out inter-bank transactions.
Is it safe to use to make bill payments with BBPS?
BBPS payment system is a one-stop ecosystem through which one can make the payment of monthly utility bills. It is absolutely safe, ensuring the confidentiality of your details. With the help of BBPS, customers across India can make payments with the certainty of end-to-end safety of transactions.
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