For boosting the usage of digital payments and ensure a hassle-free transaction experience, the Reserve Bank of India (RBI) approved the use of the Bharat Bill Payment System (BBPS) for all recurring bill payments, namely school fees, insurance premiums and municipal taxes.
As of now, the facility of payment of recurring bills through BBPS was available only in five segments such as direct to home (DTH), electricity, gas, telecom and water.
“…it has been decided to expand the scope and coverage of BBPS to include all categories of billers who raise recurring bills (except prepaid recharges) as eligible participants, on a voluntary basis,” read the RBI circular.
BBPS operates under the payments body National Payments Corporation of India (NPCI).
According to the BBPS website, the facility would be extended for including other various types of repetitive payments like insurance premium, mutual funds, school fees, EMIs, and municipal taxes, among others.
BBPS is an integrated bill payment platform which provides interoperable bill payment service to customers online as well as through a vast network of agents on the ground.