RBI issues new rules for Credit Card Bill Payment effective from July 1

RBI issues new rules for Credit Card Bill Payment effective from July 1

RBI has issued directives for all credit card payments that comes into operation from 1 July. After June 30, all credit card payments should be processed through Bharat Bill Payment System i.e. BBPS.

As of now, HDFC Bank, ICICI Bank and Axis Bank have not activated the BBPS.

The Credit Card users may find difficulty in credit card bill payment through some platforms. Some of the major fintechs that may be affected by the new rules of RBI are
CRED, PhonePe, BillDesk . The central bank directs that after June 30, all credit card payments should be processed through Bharat Bill Payment System i.e. BBPS.

As per media reports report HDFC Bank, which has issued 2 crore credit cards so far, ICICI Bank, which has issued 1.7 crore credit cards and Axis Bank, which has issued 1.4 crore credit cards, have not activated BBPS. These banks have not yet followed the instructions. Fintechs like CRED and PhonePe, already members of BBPS, will also not be able to process payments on credit card dues for them after June 30. Reportedly, only 8 banks have credit cards live on BBPS.
A total of 34 banks are allowed to issue credit cards.
The payment industry has demanded an extension of the deadline by 90 days.

Bharat Bill Payment System is an integrated system of bill payment, which provides online bill payment service to the customers. It is an interoperable platform for bill payment. This system works under the National Payments Corporation of India i.e. NPCI.

News Edit K.V.Raman