TITLE: India's Reserve Bank Issues Updated Bharat Bill Payment System Directions
BODY:
On February 29, 2024, the Reserve Bank of India (RBI) issued the Master Direction – Reserve Bank of India (Bharat Bill Payment System) Directions, 2024, updating the regulatory framework governing India's bill payment infrastructure. The new directions supersede previous guidelines dating from November 2014 and take effect on April 1, 2024.
The revised framework streamlines bill payment processes, enables greater participation, and enhances customer protection. Key changes include clarified roles for system participants: NPCI Bharat Bill Pay Limited (NBBL) operates as the Bharat Bill Pay Central Unit (BBPCU), while Bharat Bill Payment Operating Units (BBPOUs) comprise scheduled commercial banks, regional rural banks, urban and state cooperative banks, and non-bank payment aggregators. The directions establish that banks and non-bank payment aggregators intending to operate as BBPOUs no longer require separate authorisation but must notify the RBI's Department of Payment and Settlement Systems before commencing operations.
The directions introduce enhanced requirements for non-bank BBPOUs, including mandatory escrow account operations with scheduled commercial banks exclusively for BBPS transactions. NBBL must establish a centralised dispute resolution framework complying with RBI's Online Dispute Resolution guidelines. All participating Customer Operating Units and Biller Operating Units must integrate with this centralised system to enable customers and billers to raise and resolve disputes using BBPS reference numbers.
The framework applies to all scheduled commercial banks, regional rural banks, urban cooperative banks, state cooperative banks, district central cooperative banks, NPCI Bharat Bill Pay Limited, and non-bank payment system participants. The directions are issued under Section 18 read with Section 10(2) of the Payment and Settlement Systems Act, 2007.