RBI streamlines Bharat bill payment system, customers get more security

Mumbai (Uttam Hindu News): RBI has implemented a revised regulatory framework – India Bill Payment System Guidelines, 2024. This will be applicable to NPCI Bharat Bill Pay Limited (a wholly owned subsidiary of NBBL-National Payments Corporation of India) and all Bharat Bill Payment Operating Units (BBPOUs). These instructions seek to streamline the process of bill payments, enable greater participation, and enhance customer security among other changes. The instructions issued on February 29 will come into effect from April 1.

The instructions state that NBBL is the authorized entity as a payment system provider for Bharat Bill Payment System (BBPS). The instructions clearly state the roles and responsibilities of the system operator and system participants. It said that Bharat Bill Pay Central Unit (BBPCU) will provide guaranteed settlement of all transactions done through NBBL.

This will also happen:

*Ensure that all transactions from the payment initiation stage have BBPS reference number.

*Ensure that no funds flow into the system through any TSP.

*Provide a framework for redressal of consumer disputes.

The Biller Operating Unit (BOU) must ensure compliance with due diligence requirements regarding onboarding of merchants.

The Customer Operating Unit (COU) will:

*Provide digital/physical interface to your customers directly or through agent institutions.

*Ensuring that customers have access to all billers included on BBPS.

*Provide a mechanism for raising disputes; and taking responsibility for the activities of their agent institutions for which they have entered into agreements with the CoU.

The instructions regarding escrow account operations state:

*A non-bank BBPOU shall open an escrow account with a scheduled commercial bank exclusively for BBPS transactions.

*Non-bank BBPOU acts as a Payment Aggregator (PA) when it collects funds from its customers or settles funds with its associated billers. For the purpose of maintenance of escrow account, the payment system operated by BBPOU will be considered as the designated payment system.

The need for grievance management and grievance redressal system is clearly stated in the Master Direction. It lists the following steps:

*NBBL will set up a dispute resolution framework for centralized end-to-end complaint management in compliance with RBI guidelines.

*All participating COUs and BOUs will be integrated into the centralized system and customers and billers will be enabled to raise and resolve disputes as per the dispute resolution framework of NBBL. The BBPS reference number generated while initiating the transaction will be used for this purpose.

*COUs and BOUs will ensure that failed transactions are settled as per the timelines prescribed in the RBI circular on Harmonization of Turn Around Time (TAT) and customer compensation for failed transactions is provided using authorized payment systems.