The Reserve Bank of India made adjustments to the amount owed on credit cards as of July 1. According to the central bank, all credit card bill payments made using third-party applications have to go via the National Payments Corporation of India (NPCI)-managed Bharat Bill Payment System (BBPS).
Major bank credit cardholders, including those from HDFC Bank and Axis Bank, would no longer be able to pay their bills via third-party apps like CRED, PhonePe, Amazon Pay, and Paytm. These financial institutions' lack of integration with the Bharat Bill Payment System (BBPS) platform is the cause of this move.
What is it BBPS?
The Reserve Bank of India (RBI) created the Bharat Bill Payment System (BBPS) to offer cutting-edge technology solutions that would simplify the payment collecting process for both consumers and companies. Industry experts claim that BBPS allows users to easily make payments via a statewide network of physical locations, including bank branches and collection centers, as well as digital channels, including websites and applications. This cutting-edge solution offers improved flexibility and convenience by facilitating a range of payment options and guaranteeing timely payouts.
Other banks linked to BBPS
There is no need for concern for those who own credit cards from big institutions such as Bank of Baroda, Kotak Mahindra Bank, State Bank of India (SBI), and others. Customers may easily use third-party applications for their payment needs thanks to these banks' flawless integration with the Bharat Bill Payment System (BBPS) platform.
12 banks operational on BBPS
1) SBI
2) Kotak Bank
3) IndusInd Bank
4) IDBI Bank
5) AU Small Finance
6) Canara Bank
7) Bank Of Baroda
8) Federal Bank
9) ICICI Bank
10) Union Bank
11) Punjab National Bank
12) Saraswat Bank
Notable banks that are still undergoing integration include:
1. Axis Bank
2. HDFC Bank
3. IDFC First Bank
4. Indian Bank
5. Indian Overseas Bank
6. YES Bank
Third-party apps
The directive was issued by the central bank to control and keep an eye on peer-to-peer (P2P) credit card transactions that take place via third-party applications. The central bank has increased its inspection of these transactions after it was found that some users were using these sites to pay their rent and tuition with credit cards.
What should credit card holders do?
It is advisable for users to verify if their financial institution is now active on the BBPS platform. Usually, the bank's official website or its customer care contact channels provide access to this specific information. In order to ensure prompt bill settlement and prevent late payment penalties, clients whose banks have not yet linked with BBPS may consider using other payment options.
