Credit Card Payments Alert: RBI’s BBPS Mandate: Key Changes for Credit Card Payments
Bharat Bill Payment System (BBPS) Implementation
Credit card users need to be alert as new rules will come into effect from July 1, 2024. According to the Reserve Bank of India (RBI), after June 30, 2024, all credit card payments will be processed through the Bharat Bill Payment System (BBPS). Major banks such as HDFC Bank, ICICI Bank, and Axis Bank have not yet activated BBPS, which could affect over 50 million credit card users directly.
Changes Post June 30
Banks and lenders not under BBPS by June 30 will face issues as customers will be unable to pay their credit card bills through non-BBPS methods, including apps like PhonePe and Cred. These apps are already BBPS members, but banks also need to join the system to avoid inconveniences for both banks and customers.
Industry Requests for Deadline Extension
The payments industry has requested an extension of 90 days for activating BBPS. Out of the 34 banks and lenders authorized to issue credit cards in India, only 8 banks have activated BBPS bill payment services so far.
Banks That Have Activated BBPS
Banks such as SBI Card, Bank of Baroda, IndusInd Bank, Federal Bank, and Kotak Mahindra Bank have already activated BBPS.
Reason Behind RBI’s New Rule
The new rule aims to centralize credit card bill payments to give RBI better insight into payment transactions and prevent financial fraud and black money circulation through credit card bills.
FAQs with answers:
1-What is BBPS?
Ans-BBPS stands for Bharat Bill Payment System, a centralized bill payment system in India.
2-When will the new credit card payment rules come into effect?
Ans-The new rules will be effective from July 1, 2024.
3-Which banks are not yet BBPS compliant?
Ans-Major banks like HDFC Bank, ICICI Bank, and Axis Bank are not yet BBPS compliant.
4-Can I pay my credit card bill via PhonePe after June 30?
Ans-Only if your bank is BBPS compliant, as PhonePe is already a BBPS member.
5-Why is RBI implementing BBPS for credit card payments?
Ans-To centralize payments, improve oversight, and prevent fraud.
6-How many banks have activated BBPS so far?
Ans-Eight banks have activated BBPS bill payment services.
7-Will I face issues paying my credit card bill after June 30?
Ans- Yes, if your bank has not activated BBPS.
8-What should I do if my bank isn’t BBPS compliant by June 30?
Ans-Contact your bank for alternative payment methods or updates on BBPS activation.
9-Are industry bodies requesting an extension for BBPS activation?
Ans-Yes, they are requesting a 90-day extension.
10-Which banks have already activated BBPS?
Ans-SBI Card, Bank of Baroda, IndusInd Bank, Federal Bank, and Kotak Mahindra Bank.
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