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Implementation of Bharat Bill Payment System(BBPS)
Ref No.NB.DFIBT/    10341 – 10792/ DFIBT- 23/ 2018-19                
14 September 2018

Circular No. 240/ DFIBT – 37/ 2018

The Chairman/Managing Director/Chief Executive Officer
All Regional Rural Banks/ All State Cooperative Banks /
All District Central Cooperative Banks

Dear Sir,

Implementation of Bharat Bill Payment System (BBPS)

Bill payment is a major component of the retail payment transactions and it would be in the interest of banks to provide this fee based service to their customers. BBPS is a RBI conceptualized integrated bill payment system in the country that offers interoperable and accessible bill payment services to customers through a network of agents, allows multiple payment modes and provides instant confirmation of payment.  National Payments Corporation of India (NPCI) is authorized to function as the central unit responsible for setting business standards, rules, procedures and processes under single brand image for five basic utility services viz., Electricity, Gas, Water, Telecom & DTH.

Rural Cooperative Banks and Regional Rural Banks are advised to on-board to BBPS to offer superior bill payment services. This is an opportunity to serve the billing needs of the people in the rural areas at large. Further, BBPS has potential to generate fee based income for the bank.

The banks are advised to interact with the NPCI or visit their web site www.npci.org.in and work out the modalities for onboarding to BBPS and obtain authorization/approval, as the case may be, under Payment and Settlement Systems Act, 2007.

The features of BBPS and the process of onboarding, in brief, is given in Annexure – I.

Yours faithfully,


(L.R. Ramachandran)
Chief General Manager

Encl : as above



Key Features of BBPS
Interoperable    Bharat Bill Pay is an integrated ecosystem connecting banks and non-banks in bills aggregation business, billers, payment service providers and retail bill outlets.
Accessible    Facilitate seamless payment of bills through any channel: digital and physical.
Cost-effective    Most cost-effective for entire ecosystem – Flat fee charge vs current ad valorem.
Integration    BBPOUs will have to connect only to BBPCU to get access to all billers. Utility companies just need to connect to maximum two BBPOUs to enable all customers to pay bills.
Complaint Management    Standardized system to handle customer grievances for both ON-US and OFF-US transactions.
Dispute Management    Facilitate BBPOUs to raise and resolve disputes relating to transactions that have passed through Bharat Bill Pay ecosystem.
Clearing & Settlement    Multiple Clearing & Guaranteed Settlements between different parties.
Standardisation    Standardisation of processes for entire Bharat Bill Pay ecosystem.

Process of on-boarding as Agent to BBPS

A.    Process for On-boarding as an Agent Institution
On-boarding of agent institutions will be the responsibility of BBPOUs.  Each BBPOU will ensure compliance with the following parameters while on-boarding any agent institution.

Documentation requirements:
1.    Business address authorization letter and license to carryon business.
2.    Compliance of KYC (Proof of registered/ business address, active bank account details, PAN).
3.    Credibility check, credential verification and banker’s opinion report
4.    ITR of last 2 years
5.    Financial Statements for at least 2 years/other credit verification/background check /CIBIL verification of promoters and directors.
6.    Should not be part of blacklist, as and when introduced by BBPCU or any other competent authority.

On-boarding Process:
1.    The Agent Institution can be on-boarded by not more than two BBPOUs. It will submit a request for participation to BBPOU, mentioning the name(s) of the other BBPOU/s as well.
2.    An agent institution will get access to BBPS application module through a designated BBPOU only. There will be an application for accessing BBPS application module through a designated BBPOU.
3.    Agent institution will submit a list of its sub-agent/s, if they exist, to BBPOU.
4.    Agent institution will make available at least a minimum number of modes of payments at its outlets/customer service points, as required under BBPS. Modes of payment under BBPS would also be configured as per Biller’s requirement. In addition to cash acceptance, the outlets will have to ensure an electronic mode of payment is put in place over a reasonable period of time, not exceeding one year from the launch of BBPS.

Note:  Sub-agent of an agent institution will access BBPS application via the agent institution, who in turn will be accessing BBPS via its BBPOUs.


B.    Process for on-boarding Agents
Entities acting as BBPOUs/ Agent Institutions will ensure the following parameters while on-boarding agents (who may also be referred to as sub-agents):

Documentation requirements:
1.    Business address authorization letter and license/authorization to carry on business.
2.    Compliance of KYC (Generally accepted proof of identity and address as required for opening bank accounts as per extant instructions.  Illustratively, for proof of identity:  Govt. Issued Photo ID or Aadhaar number or PAN card; for proof of address:  current or permanent residential address proof or Aadhaar card or current address recorded in bank account)
3.    Credibility check and credentials verification, account with any bank.


On-boarding Process:
1.    Agents will submit a BBPS participation letter to BBPOU mentioning name of core BBPOU as well.
2.    Application for accessing BBPS Application module from BBPOU.
3.    BBPOU shall confirm the availability of at least a minimum number of payment modes (cash/ credit card/ debit card) at the agent’s outlet.

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