Bharat Bill Payment System

Why in news?

• The Reserve Bank of India has passed a big declaration for NRIs in the monetary policy. RBI Governor has proposed to enable Bharat Bill Payment System to accept cross-border inward bill payments

About Bharat Bill Payment System:

• Bharat Bill Payment System (BBPS) is an integrated bill payment system offering interoperable and accessible bill payment service to customers through a network of agents of registered member as Agent Institutions (AI), enabling multiple payment modes, and providing instant confirmation of payment.
• National Payments Corporation of India (NPCI) functions as the authorised Bharat Bill Payment Central Unit (BBPCU), which will be responsible for setting business standards, rules and procedures for technical and business requirements for all the participants.
• NPCI, as the BBPCU, will also undertake clearing and settlement activities related to transactions routed through BBPS.
• Existing bill aggregators and banks are envisaged to work as Operating Units to provide an interoperable bill payment system irrespective of which unit has on-boarded a particular biller.
• Payments may be made through the BBPS using cash, transfer cheques, and electronic modes.

PRACTICE QUESTION:

Consider the following statements regarding Bharat Bill Payment System (BBPS):

1. It is managed by Reserve Bank of India.

2. Payments in BBPS cannot be made using cash.

Which of the statements given above is/are correct?

(a)1 only

(b)2 only

(c)Both 1 and 2

(d)Neither 1 nor 2

Answer