Due to the RBI‘s need for BBPS compliance, big banks including HDFC, ICICI, and Axis Bank will stop taking credit card bill payments through third-party applications as of July 1. On the other hand, banks like SBI, Bank of Baroda, and Kotak Mahindra will keep operating as usual. To prevent service interruption, the Payments Council of India is requesting a ninety-day extension for BBPS compliance.
What Caused This Change?
The Reserve Bank of India’s (RBI) regulation that all credit card bill payments be made through the Bharat Bill Payment System (BBPS) is what caused this shift. Although the goal of this change is to consolidate and expedite the payment process, banks, and users will face difficulties as a result.
However, there’s no need to fear if you own a credit card from any of the following: SBI, Bank of Baroda, Kotak Mahindra Bank, IndusInd Bank, Federal Bank, Canara Bank, RBL Bank, or AU Small Finance Bank. Customers of these banks can still use third-party applications to make payments because they are hosted on the BBPS platform.
The Centralization Initiative Of The RBI
To improve monitoring of payment trends as well as supervision over any fraud, the RBI directed that all credit card bill payments be processed through the BBPS. The BBPS platform improves transaction effectiveness and openness by providing a centralized interface for bill payments.
The Appeal
A ninety-day extension has been requested by the Payments Council of India (PCI) from the RBI to enable additional banks to comply with the BBPS. For millions of credit card customers, service interruptions would be avoided with the aid of this extension. Currently, 26 of the 34 banks that are permitted to issue credit cards have not yet integrated with BBPS.
User Adjustment And Issues
To prevent delays in their bill payments, credit card holders are sharing their worries on social media and asking for an extension of the deadline. Additionally, users are getting used to other payment options including going via the banks directly.
Effects On Big Banks
BBPS integration is taking longer than expected, which is a big problem for big banks that together have more than 50 million credit cards. Making the switch to BBPS is crucial to preserving consumer confidence and guaranteeing adherence to RBI rules.
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