Starting July 1, users cannot pay their credit card bills through third-party fintech applications for banks that have not integrated with the Bharat Bill Payments System (BBPS). This change will significantly impact popular fintech platforms such as Cred, Paytm, PhonePe, and Amazon Pay.
Compliance with RBI Guidelines for Credit card bills
According to a Paytm spokesperson, “In line with RBI guidelines, we will facilitate credit card bill payments only for banks that are part of the Bharat Bill Payment System (BBPS) starting from July 1st. This underscores our commitment to adhering to regulatory guidelines and providing compliant payment solutions to our users.”
Industry-Wide Adjustments
A senior executive at a leading fintech company stated, “Some industry players have decided not to process payments for non-compliant lenders. Third-party entities will be unable to process such transactions or find alternative methods to do so.” Executives from various fintech firms have indicated that while some may continue processing credit card transactions for non-compliant banks, doing so would violate RBI norms.
Risk and Compliance
“It will depend on the risk appetite of a player if they continue, but it will be in violation of the RBI regulations. Ideally, most banks should have integrated with BBPS by now. With the deadline approaching, the industry expects a fast-track process,” an industry executive noted.
Major Banks Yet to Integrate
Sources have revealed that major credit card issuers such as HDFC Bank, ICICI Bank, and Axis Bank have not yet activated BBPS integration. This delay may cause short-term disruptions for companies like Cred, whose business models heavily rely on credit card payments until all banks comply.
About BBPS
The Bharat Bill Payment System (BBPS) is an integrated bill payment platform that enables the payment and collection of bills through multiple channels, including mobile apps and bank branches. BBPS aims to streamline bill payments across India, ensuring a seamless and secure transaction experience for users.
