FAQ- BHARAT BILL PAYMENT SYSTEM

What is BBPS?

Indian bills are paid through the Bharat Bill Payment System (BBPS), developed by the National Payments Corporation of India (NPCI) and regulated by the Reserve Bank of India (RBI). A BBPS payment platform offers convenience, accessibility, and security for paying bills across different categories, allowing customers to pay bills in different ways.

Key Features of BBPS:

1. Interoperability: BBPS allows customers to pay bills from any location, using any payment channel, whether online or offline. This includes bank branches, ATMs, internet banking, mobile banking, and authorized agent locations.

2. Multiple Payment Modes: It supports various payment methods including cash, credit/debit cards, internet banking, UPI, wallets, and more.

3. Instant Confirmation: Customers receive instant payment confirmation through SMS or email, providing assurance that their payment has been successfully processed.

4. Wide Range of Billers: BBPS covers a wide array of billers including utilities (electricity, water, gas), telecom (mobile, landline), DTH, insurance, loan repayments, FASTag recharge, and more.

5. Standardization: It offers a unified, standardized system for bill payment services, ensuring consistency and reliability across different service providers and channels.

6. Security: BBPS is designed to be secure, protecting customers' data and transactions through robust security protocols and encryption.

7. Customer Convenience: The system aims to enhance the customer experience by making bill payments simpler, faster, and more accessible.

Structure of BBPS:

1. BBPCU (Bharat Bill Payment Central Unit): NPCI acts as the BBPCU, setting the standards, processes, and infrastructure for the BBPS. It ensures the system's integrity, interoperability, and security.

2. BBPOUs (Bharat Bill Payment Operating Units): These are entities authorized to operate under the BBPS framework. BBPOUs can be banks or non-bank entities that facilitate the bill payment process by aggregating billers and providing payment services to customers.

What is BBPS BOU?

In India, the Bharat Bill Payment System (BBPS) provides interoperable, accessible, and multiple payment modes for bill payment services, including instant confirmation for payments made through an agent network. Management of the scheme is entrusted to the National Payments Corporation of India (NPCI).

BOUs are licensed companies operating as billers and collection agents within the BBPS framework.An entity that is deemed a BOU can include a bank, a non-bank, or another organization that meets the qualifying criteria set by the Reserve Bank of India (RBI).

What is BBPS COU?

The Bharat Bill Payment System Customer Operating Unit is commonly referred to as BBPS COU. Consumers pay bills through COUs, which serve as customer-facing units in the BBPS framework.

What is UPMS?

UPMS stands for Unified Payments Interface (UPI) Mandate Service. It is a service introduced by the National Payments Corporation of India (NPCI) under the UPI framework. Here's an explanation of UPMS:

India's Universal Payments Interface (UPI), which facilitates interbank transactions, was developed by the National Payments Corporation of India (NPCI).

UPI Mandate Service (UPMS)

UPMS is an extension of the UPI system that allows users (payers) to set up mandates for making recurring payments to merchants (payees). A mandate is an instruction given by the payer to their bank through UPI to authorize the payee to collect a specified amount of money at regular intervals (like daily, weekly, monthly) for a specific purpose or service.

Key Features of UPMS:

1. Recurring Payments: UPMS enables seamless recurring payments for services like utility bills, subscriptions, loan EMIs, insurance premiums, etc.

2. Authorization: Payers can set up mandates through their UPI-enabled mobile apps by specifying details such as amount, frequency, start date, end date (if applicable), and purpose of the mandate.

3. Flexibility: Payers have the flexibility to manage their mandates, modify them, or cancel them as per their requirements through their UPI apps.

4. Security: UPMS leverages the security features of UPI, including two-factor authentication (2FA) and encryption, to ensure safe and secure transactions.

5. Convenience: It provides a convenient way for payers to automate their recurring payments, reducing the need for manual intervention each time a payment is due.

How BBPS Transaction Service Providers (TSPs) Work:

Technology Service Providers (TSPs) play a crucial role in facilitating transactions between customers and billers within the BBPS framework. Here is how the process works:

1. Customer Initiates Payment: The customer can initiate a bill payment through multiple channels such as internet banking, mobile banking, ATM, agents, or via other digital platforms provided by the OUs.

2. Request Routing:

• The CSP (Customer Service Provider), which could be a bank or a non-bank entity, collects the bill payment request from the customer.

• The CSP forwards the request to the BBPCU, ensuring the request is in the standardized format required by BBPS.

3. BBPCU Processing:

• The BBPCU receives the payment request and routes it to the appropriate BOU (Biller Operating Unit).

• The BOU communicates with the specific biller to fetch the bill details and amount due.

4. Bill Verification:

• The BOU verifies the bill details and sends the information back to the BBPCU.

• The BBPCU relays this information to the CSP, which then presents it to the customer for confirmation.

5. Payment Confirmation:

• The customer confirms the bill details and authorizes the payment.

• The CSP sends the payment details back to the BBPCU.

6. Transaction Processing:

• The BBPCU processes the transaction, ensuring the payment is transferred from the customer’s account to the biller’s account.

• The BOU updates the biller about the payment received.

7. Notification and Receipt:

• Once the payment is successful, the CSP and the BOU notify the customer and the biller respectively.

• The customer receives a confirmation receipt for the payment, which can be used as proof of payment.

8. Reconciliation and Settlement:

• The BBPCU ensures daily reconciliation and settlement of transactions among all the parties involved.