Soon, you would be able to pay all your bills, including utility bills, school & college fee and local authority taxes through a single electronic payment system.
The Reserve Bank of India (RBI) has given its go-ahead to Bharat Bill Payment System, a multi-layered single-window bill payment system that will bring different players such as billers, agents, aggregators, banks and payment gateways under one umbrella.
The objective is to create an integrated system that offers interoperable bill payment services to customers and provides instant confirmation of payment. It will also provide a payment system to those who have no access to the banking system.
The architecture of the system would comprise broadly two entities - a central unit and operating units. The role of the central unit would be to lay down operational and technical standards and act as clearing and settlement agency.
National Payment Corporation of India (NPCI) has been assigned the role of the central unit. Any company registered under the Companies Act (1956) with a minimum net worth of Rs 100 crore and one-year experience of bill collection and transaction processing can seek approval from the RBI to become an operating unit.
Any transaction involving agents and billers of the same operating unit can be settled by the unit itself, but transactions involving billers and agents of different operating units will be settled by the central unit. "The interoperability feature would help us connect to more users and that will give us scale. Both the opportunities and role would increase for us," Satyen V Kothari, founder and CMD, Citrus Payment Solution. It is not clear yet what fee will be charged from consumers for using the platform.