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Master Direction · Reserve Bank of India

Master Direction – Reserve Bank of India (Bharat Bill Payment System) Directions, 2024

UR

The four dates on this rule

At a glanceAn Agent Institution gives customers a way to pay bills. This covers NBBL and all Bharat Bill Payment Operating Units.

Official RBI page

What it says

How firm is each point

Stated by RBI — RBI’s own paragraph says this. We have only made it plainer.

Our reading — BankPulse read RBI’s paragraph and shortened it. The paragraph is the authority, not this line.

Needs judgement — RBI leaves this to the bank to settle, so nobody can give you a fixed number here.

Must know

1. Who this covers

RBI Para 2 · Stated by RBI

This covers NBBL and all Bharat Bill Payment Operating Units.

2. Outside billers need authorisation

RBI Para 3 · Our reading

Anyone else running a bill-payment system outside BBPS needs RBI's authorisation.

3. BBPCU guarantees settlement

RBI Para 6 · Stated by RBI

BBPCU guarantees settlement of every transaction routed through it.

4. Money must bypass the TSP

RBI Para 6 · Stated by RBI

No money in the system may flow through any TSP.

5. Customers reach every biller

RBI Para 6 · Stated by RBI

A COU must give customers access to every biller on BBPS.

6. COU answers for its agents

RBI Para 6 · Our reading

A COU is responsible for what its agent institutions do.

Do it

1. Tell RBI before starting

RBI Para 5 · Our reading

A new operating unit must tell RBI's department before starting work.

2. Check billers from aggregators too

RBI Para 6 · Our reading

A BOU must also check billers who came through an aggregator.

3. Open a dedicated escrow account

RBI Para 7 · Stated by RBI

A non-bank operating unit must open its own escrow account at a bank.

4. Build a dispute resolution system

RBI Para 8 · Our reading

NBBL must set up one system for handling every complaint.

5. Join the complaint system

RBI Para 8 · Our reading

Every operating unit must join that complaint system and use it.

6. Meet failed-transaction timelines

RBI Para 8 · Our reading

Operating units must fix failed transactions within RBI's set timelines.

Background

1. Only NBBL may run this

RBI Para 3 · Stated by RBI

Only NBBL is authorised to operate the Bharat Bill Payment System.

2. What an Agent Institution is

RBI Para 4 · Our reading

An Agent Institution gives customers a way to pay bills.

3. What BBPCU means

RBI Para 4 · Stated by RBI

BBPCU is the single entity that runs BBPS.

4. What a BBPOU is

RBI Para 4 · Stated by RBI

A BBPOU is a system participant inside BBPS.

5. What a BOU does

RBI Para 4 · Stated by RBI

A Biller Operating Unit brings billers onto the BBPS platform.

6. What a COU does

RBI Para 4 · Stated by RBI

A Customer Operating Unit gives customers a way to pay bills.

7. What BBPS itself is

RBI Para 4 · Stated by RBI

BBPS is one platform for paying bills through many channels.

8. What counts as a Bill

RBI Para 4 · Stated by RBI

A Bill is any payment notice a biller raises.

9. Who counts as a Biller

RBI Para 4 · Our reading

A Biller is whoever raises the bill, including government bodies.

10. What a Biller Aggregator does

RBI Para 4 · Stated by RBI

A Biller Aggregator groups billers together to connect them to a BOU.

11. What a Sponsor bank does

RBI Para 4 · Our reading

A Sponsor bank helps a non-bank operating unit settle with NBBL.

12. What a TSP does

RBI Para 4 · Our reading

A Technology Service Provider helps others connect their systems to BBPS.

13. BOU brings billers on board

RBI Para 6 · Stated by RBI

A BOU is the one that onboards billers to BBPS.

14. When it acts as PA

RBI Para 7 · Stated by RBI

A non-bank operating unit acts as a Payment Aggregator when it collects or settles funds.

15. Other escrow rules still apply

RBI Para 7 · Stated by RBI

Every other escrow-account rule under RBI's payment aggregator guidelines still applies.

16. Old BBPS rules replaced

RBI Para 9 · Stated by RBI

These Directions replace four earlier BBPS circulars.

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