Categories: Banking

RBI reduces net-worth requirement for non-bank Bharat Bill Payment units

Federal Bank and Bank of India penalized by RBI for breaking regulatory obligations

The Reserve Bank of India (RBI) has eased norms for non-bank entities to set up Bharat Bill Payment operating units by reducing the net-worth requirement to Rs 25 crore, with a view to encouraging more players in the segment. At present, a net worth of Rs 100 crore is required to obtain authorisation for a non-bank BBPOU (Bharat Bill Payment Operating Units). The reduction in net-worth requirements follows an announcement regarding the same by the central bank in April.

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To increase participation, the RBI had decided to align the net worth requirement of non-bank BBPOUs with that of other nonbank participants who handle customer funds (like payment aggregators) and have a similar risk profile.

About the Bharat Bill Payment System (BBPS):

Bharat Bill Payment System (BBPS) is an interoperable platform for bill payments and the scope and coverage of BBPS extend to all categories of billers who raise recurring bills. Users of BBPS enjoy benefits like a standardised bill payment experience, a centralised customer grievance redressal mechanism and a prescribed customer convenience fee.

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Sumit Arora

As a team lead and current affairs writer at Adda247, I am responsible for researching and producing engaging, informative content designed to assist candidates in preparing for national and state-level competitive government exams. I specialize in crafting insightful articles that keep aspirants updated on the latest trends and developments in current affairs. With a strong emphasis on educational excellence, my goal is to equip readers with the knowledge and confidence needed to excel in their exams. Through well-researched and thoughtfully written content, I strive to guide and support candidates on their journey to success.