The Reserve Bank of India (RBI) has formed an advisory group to implement a National Bill Payment System based on the GIRO model that will enable households to make retail payments like paying utility bills,school fees,medical bills and remittances electronically using their bank accounts.
The nine-member GIRO Advisory Group (GAG),headed by Umesh Bellur,Professor at the Indian Institute of Technology Bombay,will submit its report by end of December this year,the RBI said in a statement.
GIRO is a payment instruction from one bank account to another that is initiated by the payer,and not by the payee. The GIRO payment system which the RBI now wants to formalise will cover any third party payment made through any payment mode: cash,cheque,credit/debit cards,prepaid payment instruments.
The group will suggest the nature of organisation to undertake the GIRO based bill payments. It will also frame guidelines for setting up and operating the GIRO based bill payments in the country and recommend the criteria (financial,governance,ownership,technical and operational) for the entity to seek authorisation for setting up bill payments system in the country under the Payment and Settlement Systems Act,2007.