RBI Allows Prepaid Mobile Recharges Through Bharat Bill Payment System

On June 14, 2021, the Reserve Bank of India (RBI) announced to allow prepaid mobile recharges through the Bharat Bill Payment System (BBPS).

BBPS is operated by the National Payments Corporation of India (NPCI), that offers an interoperable platform for recurring bill payments.

The RBI said, “Considering constant development in distinct biller categories and to enable mobile prepaid customers with additional options to recharge, it has been agreed to allow ‘mobile prepaid recharges’ as a biller category in BBPS. The change will be implemented on or before August 31, 2021.”

In May 2021, through the BBPS channel 213.59 million bill payment transactions were carried out. NPCI is planning to spin off BBPS into an individual subsidiary and is on the watch for a chief executive to supervise it.

BBPS began in 2014 as a platform for recurring bill payments, which covered bills of five categories – water, direct to home (DTH), gas, electricity and telecom. The framework offered standardised bill payment experience, prescribed customer convenience fee, centralised customer grievance redressal mechanism and guaranteed accessibility of digital payment choices.

In September 2019, the scope and coverage of BBPS was enlarged via an RBI circular to include all categories of billers which boost recurring bills (except mobile prepaid recharges) as eligible applicants, on a voluntary basis.

Source: IBEF