Bharat Bill Payment: RBI to lower net worth requirement for operating units to ₹25 crore

BL Mumbai Bureau | | Updated on: Apr 08, 2022
Image for represenatational purpose only

Image for represenatational purpose only

RBI will also issue guidelines on cyber resilience and payment security controls for payment system operators

With growing popularity of Bharat Bill Payment System, the RBI has decided to lower the net worth requirement of operating units to ₹25 crore from the current limit set at ₹100 crore.

“To further facilitate greater penetration of bill payments through the BBPS and to encourage participation of a greater number of non-bank Bharat Bill Payment Operating Units in the BBPS, it is proposed to reduce the net worth requirement of such entities from ₹100 crore to ₹25 crore,” said RBI Governor Shaktikanta Das on Friday.

The Statement on Developmental and Regulatory Policies noted that while BBPS has seen an increase in the volume of transactions and number of onboarded billers, it is observed that there has not been a corresponding growth in the number of non-bank Bharat Bill Payment Operating Units (BBPOUs).

“The current requirement of net worth for a non-bank BBPOU to obtain authorisation is ₹100 crore and it is viewed as a constraint to greater participation,” it said, adding that necessary amendment to regulations will be carried out shortly.

BBPS is an interoperable platform for bill payments and covers all categories of billers who raise recurring bills.

In March this year, BBPS processed 7.13 crore bill payments worth ₹11,467.79crore for categories such as electricity, FASTags, loan repayments and LPG gas. While there are over 20,000 billers on the platform, there are only 30 BBPOUs.

Meanwhile, in a bid to maintain safety and security of payment systems, the RBI will soon issue directions for Payment System Operators (PSOs), covering robust governance mechanism for identification, assessment, monitoring and management of cybersecurity risks, including information security risks and vulnerabilities, and specify baseline security measures for ensuring safe and secure digital payment transactions.

Published on April 08, 2022
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