Paytm Payments Bank said it has received final approval from the Reserve Bank of India to operate as a Bharat Bill Payment Operating Unit (BBPOU). Under Bharat Bill Payment System (BBPS), a BBPOU is allowed to facilitate bill payment services of electricity, phone, DTH, water, gas insurance, loan repayments, FASTag recharge, education fees, credit card bill and municipal taxes.
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More About This:
PPBL has got the final approval from RBI to operate as Bharat Bill Payment Operating Unit (BBPOU) under the Payment and Settlement Systems Act, 2007. As an entity under Bharat Bill Payment System (BBPS), PPBL has got the final authorization to conduct bill payment and aggregation business as a BBPOU.
Significance of This Move:
Through the Paytm app, users can make convenient payments for their bills and benefit from automatic payment and reminder services.
What is the Bharat Bill Payments System:
- It is an integrated bill payment system or a platform that acts as a connection between various billers and users.
- The Bharat Bill Payment System offers customers the convenience of payment by cataloguing various utility providers under one platform.
- It acts as a central reference for a customer who wants to make different payments, whether utility bills, loan repayments, FasTag recharge, etc.
- BBPS was conceptualised by the Reserve Bank of India in 2013 and is a product of the National Payments Council of India (NPCI).
- It was launched as a pilot project in 2016 and went live a year later. By 2019, BBPS on boarded all recurring payments.