RBI reduces net-worth requirement for non-bank Bharat Bill Payment units to Rs 25 crore

The RBI on Thursday eased norms for non-bank entities to set up Bharat Bill Payment operating units by reducing the net-worth requirement to Rs 25 crore, to encourage more players in the segment.

At present, a net worth of Rs 100 crore is required to obtain authorization for a non-bank BBPOU (Bharat Bill Payment Operating Units).

Bharat Bill Payment System (BBPS) is an interoperable platform for bill payments and the scope and coverage of BBPS extend to all categories of billers who raise recurring bills.

''...the minimum net-worth requirement for non-bank Bharat Bill Payment Operating Units (BBPOUs) stands reduced to Rs 25 crore,'' the Reserve Bank of India said in a circular.

Users of BBPS enjoy benefits like a standardized bill payment experience, a centralized customer grievance redressal mechanism, and a prescribed customer convenience fee.

The reduction in net-worth requirements follows an announcement regarding the same by the central bank in April.

The RBI had said while BBPS has seen an increase in the volume of transactions as well as several onboarded billers, it is observed that there has not been a corresponding growth in the number of non-bank BBPOUs.

The requirement of Rs 100 crore net worth for a non-bank BBPOU to obtain authorization was viewed as a constraint to greater participation, it had said.

To increase participation, the RBI had decided to align the net worth requirement of non-bank BBPOUs with that of other non–bank participants who handle customer funds (like payment aggregators) and have a similar risk profile.

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)