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.
- 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.