Cashless Society – Digital Payments, Demonetization, etc.

Bharat Bill Payment System (BBPS)


From UPSC perspective, the following things are important :

Prelims level : BBPS

Mains level : Promoting cashless transactions in India

  • The RBI has expanded the scope of the Bharat Bill Payment System (BBPS) by adding other categories of recurring payments through the portal.

Why in news?

  • With the expansion of the scope of the payment facility, other recurring payments such as school fees, municipal taxes, insurance premiums can also be paid via BBPS.
  • Till now, the Bharat Bill Payment System used to cater to just five segments — direct to home (DTH), electricity, gas, telecom and water.

About BBPS

  • The Bharat Bill Payment System was launched by the National Payment Corporation of India on 31 August 2016 under the recommendation of RBI executive director G. Padmanabhan committee.
  • The platform allows customers across the country to use one single website or outlet to pay all their bills with reliability and safety of transactions.
  • According to a report, a total of 338 million transactions took place on the BBPS network over the course of 2018-19.
  • BBPS payments can be made using cash, cheques as well as through digital methods such as internet banking, debit, credit card, among others.
  • The payment service is provided to customers through a network of agents, enabling multiple payment modes, including cash, and an instant confirmation of payment is provided after the transaction.
  • It even has a standardized system to handle grievances for both online and offline transactions.
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