As a part of PM Modi’s Digital India movement, Bharat Bill Payment System is expected to bring ease and convenience to bill payments in India. The system includes an online platform as well as physical outlets. BBPS is meant to serve bill generators and bill payers in the country making it possible instant payment and receipt of money.
In the first phase, payment of regular utility bills e.g. water, electricity, gas, DTH television, telephone bills etc. will be possible through this platform. Later it is expected to include all types of bills including school fees, insurance premiums etc.
According to the data put forward by RBI, country’s top 20 cities generate a bill amount of Rs. 6223 billion annually. Customers either need to physically visit the bill payment outlets or to use their websites to pay your bills. Platforms like PayTM and others obviously facilitate the process but RBI wants to better monitor, unify and standardize their operations through BBPS.
Bill Payers’ Benefits
The common advantage of the system is that bills can be paid anytime, anywhere. No need to stand for hours in the queue. Multiple convenient modes of bill payment e.g. online and mobile banking, credit and debit cards, cash etc. would be available to the customers.
Throughout the country, bill payment outlets are going to be established. These payment outlets will also include banks and ATMs. Customers would be able to withdraw money and pay the bill at one place.
These payments made using National Payments Corporation of India’s network are secured and guaranteed. Receipts will be issued immediately after payment. The system is also going to include means to avoid any kind of fraud transactions.
Bill Generators’ Benefit
What does BBPS imply for the payment recipient utility service providers? No doubt, less hassle and a more organized system of payment collection. Bills will be generated and disbursed online. The companies need not appoint bill collectors. This means that operational costs are going to be less. Due to this cost reduction, the utility service providers would be able to offer customers different types of value added services.
Benefits for e-commerce
Right now, different e-commerce platforms use different payment gateways. Some are better than others but you have no choice once you shop with one particular online store.
With BBPS in operation, you can use one centralized payment system to pay all the e-commerce platforms registered with the system. You need not upload your personal information every time a new as you shop with a new store. The most important thing is that your personal information is not going to be mishandled anymore as RBI sets the business standards of all these integrated e-commerce platforms.
Benefits to the Payment Gateways
The existing payment gateways e.g. Paytm, Oxigen etc. are not going to be affected anyway. They will be only integrated into the BBPS for better service. The market is big enough and every company is going to have their own share. Virtual wallets offered by these companies would be available to pay any bill generator.