Apart from announcing a 35-basis point increase in the key lending price, Reserve Bank of India Governor Shaktikanta Das on Wednesday additionally spoke about the plans to amplify the scope of Bharat Bill Payment System (BBPS) and UPI.
Users can soon use BBPS for making any type of fee starting from tax bills, rents to even faculty expenses. “The scope of BBPS is being better to include all classes of payments and collections — each routine and non-recurring and for all categories of users — traders and people,” Das announced.
In addition to that, UPI users will quickly be able to separate and block funds in their bills for precise use cases because the RBI has decided to introduce a unmarried-block-and-a couple of debits functionality in UPI. This will significantly decorate the convenience of creating bills in e-trade area and towards investments in securities.
Enhancements to UPI – Processing Mandates with Single-Block-and-Multiple-Debits
UPI has features which allow processing of mandates for habitual transactions and unmarried-block-and-single-debit capability. The important financial institution is of the view that its skills may be enhanced to permit a patron to create a fee mandate against a service provider through blockading funds in his/her financial institution account for precise purposes which can be debited, on every occasion wanted.
“This could be useful for inn bookings, buy of securities in the secondary capital marketplace as additionally purchase of government securities using the RBI’s Retail Direct scheme, e-commerce transactions etc. This will construct higher diploma of believe in transactions as merchants may be assured of well timed bills, while the budget stay in the consumer’s account until actual delivery of products or offerings,” Das said.
Bharat Bill Payment System (BBPS) to include all bills and collections
Launched 5 years in the past in 2017, BBPS, an interoperable platform operated by NPCI Bharat BillPay Ltd., has been facilitating the bill fee desires of purchasers and billers alike. However, BBPS currently does no longer enable non-ordinary bills or collection requirements of people even supposing they’re recurring in nature.
Now, the RBI has determined to extend the scope of BBPS to encompass all categories of bills and collections, each habitual and non-habitual in nature. This could make the platform on hand to a much broader set of people and agencies and eligible to make bills like training fees, tax bills, hire collections, and many others.
After its MPC meet in August, the RBI had said that the BBPS has been enabled to simply accept cross-border bills. The improvement will let non-resident Indians (NRIs) to pay utility bills on behalf of circle of relatives participants in India.