Skip to content
BankPulseBETARegulatory intelligence for Indian banking
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

Must know

1. Who this covers

This covers NBBL and all Bharat Bill Payment Operating Units.

2. Outside billers need authorisation

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

3. BBPCU guarantees settlement

BBPCU guarantees settlement of every transaction routed through it.

4. Money must bypass the TSP

No money in the system may flow through any TSP.

5. Customers reach every biller

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

6. COU answers for its agents

A COU is responsible for what its agent institutions do.

Do it

1. Tell RBI before starting

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

2. Check billers from aggregators too

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

3. Open a dedicated escrow account

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

4. Build a dispute resolution system

NBBL must set up one system for handling every complaint.

5. Join the complaint system

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

6. Meet failed-transaction timelines

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

Background

1. Only NBBL may run this

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

2. What an Agent Institution is

An Agent Institution gives customers a way to pay bills.

3. What BBPCU means

BBPCU is the single entity that runs BBPS.

4. What a BBPOU is

A BBPOU is a system participant inside BBPS.

5. What a BOU does

A Biller Operating Unit brings billers onto the BBPS platform.

6. What a COU does

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

7. What BBPS itself is

BBPS is one platform for paying bills through many channels.

8. What counts as a Bill

A Bill is any payment notice a biller raises.

9. Who counts as a Biller

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

10. What a Biller Aggregator does

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

11. What a Sponsor bank does

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

12. What a TSP does

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

13. BOU brings billers on board

A BOU is the one that onboards billers to BBPS.

14. When it acts as PA

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

15. Other escrow rules still apply

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

16. Old BBPS rules replaced

These Directions replace four earlier BBPS circulars.

Where to go next