Who: In-principle approval to NPCI
What: Granted by Reserve Bank of India
When: 24 November 2015
Why: To function as the central unit for Bharat Bill Payment Systems
The Reserve Bank of India on 24 November 2015 decided to grant in principle approval to the National Payments Corporation of India (NPCI) to function as the Bharat Bill Payment Central Unit (BBPCU) inBharat Bill Payment System (BBPS).
The BBPS is an integrated bill payment system which will function as a tiered structure for operating the bill payment system in the country with a single brand image providing convenience of anytime anywherebill payment to customers.
Role of NPCI as the central unit
• As the central unit, NPCI will set necessary operational, technical and business standards for the entire system and its participants.
• Besides, NPCI will undertake clearing and settlement activities.
The present scope of BBPS will include utility bill payments, such as, electricity, water, gas, telephone and Direct-to-Home (DTH).
About National Payments Corporation of India
• National Payments Corporation of India (NPCI) was incorporated in December 2008 and the Certificate of Commencement of Business was issued in April 2009.
• It has been incorporated as a Section 25 company under Companies Act.
• It is aimed to operate for the benefit of all the member banks and their customers.