Bharat Bill Payment System (BBPS)

09.07.2024

Bharat Bill Payment System (BBPS)

Why in the news?

The Reserve Bank of India (RBI) recently announced that all credit card bill payments via third-party applications must now be routed through the Bharat Bill Payment System (BBPS).

About Bharat Bill Payment System (BBPS):

• It is a payment channel system conceptualized by the RBI and driven by the National Payments Corporation of India (NPCI).
• It is a one-stop payment platform for all bills providing an interoperable and accessible “Anytime Anywhere” bill payment service to all customers across India with certainty, reliability and safety of transactions.
• The system will provide multiple payment modes and instant confirmation of receipt of payment.
• It is an integrated platform connecting banks and non-banks in bill aggregation business, billers, payment service providers and retail bill outlets.
• It offers customers the convenience of payment by cataloguing various utility providers on one platform.
• BBPS offers bill collection categories like electricity, telecom, Mobile Postpaid, DTH, gas, water bills etc. through a single window.
• Other types of payments, like school/university fees, municipal taxes/ payments, mutual funds and insurance premiums, various government taxes, etc. as decided from time to time by the RBI will be incorporated in BBPS.

Different Payment Channels:

• Customers can make payments via physical payment collection outlets (bank branches, agent collection stores etc.) and digital channels (apps, websites etc.) across India.
• It provides instant confirmation of payment via an SMS or receipt.

                                                               Source: Financial Express

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

Statement-I

 It was conceptualized by the Reserve Bank of India (RBI) and driven by the National Payments Corporation of India (NPCI).

Statement-II

 It is a one-stop payment platform for all bills, providing multiple payment modes and instant confirmation of receipt of payment.

Which one of the following is correct in respect of the above statements?

A.Both Statement-I and Statement-II are correct, and Statement-II is the correct explanation for Statement-I.

B.Both Statement-I and Statement-II are correct, and Statement-II is not the correct explanation for Statement-I.

C.Statement-I is correct, but Statement-II is incorrect.

D.Statement-I is incorrect, but Statement-II is correct.

Answer A