An RBI panel today made a case for centralised bill payment system catering to different financial instruments, like cheques, debit cards and mobile banking.
“In order to ensure uniform and efficient implementation of operations of the bill payments system in the country, standards have to be set for process standards, business standards for establishing the relationship between all entities, and information exchange standards for transactions as well as settlements,” it said.
The RBI has sought comments on the Report of the GIRO Advisory Group till May 25.
This centralised bill payments system, it said will provide accessible services across all parts of the country through a strong network of operational units/agents who will ensure in making this service accessible in urban as well as rural areas.
The report further said the standard setting role/ function has to be distinct from the operational aspects of the bill payments system.
“It is, therefore, recommended that the bill payments system follow a ‘tiered structure’ – the standard setting functions being carried out by a central body / agency (to be named as Bharat Bill Payment System – BBPS) with actual operations being carried out by multiple entities,” it added.
Currently, the payment system in the country offers a variety of payment instruments to the public, like cheques and various e-payment modes in the form of credit cards, debit cards, pre-paid payment instruments (including mobile wallets) issued by both banks and authorized non-bank entities.
In the context of bill payments, the payment delivery channels available to customers and consumers include bank branches, business correspondents, ATMs, mobile banking, internet banking, among others.