New Delhi:
Starting June 30, paying credit card bills through platforms like PhonePe, Cred, BillDesk, and Infibeam Avenue will become difficult due to new regulations by the Reserve Bank of India (RBI).
The RBI has mandated that all credit card payments must be processed through the Bharat Bill Payment System (BBPS) after this date.
As a result, major fintech platforms will be unable to facilitate these payments unless the banks comply with the new system.
Banks Yet to Activate BBPS
Major banks such as HDFC Bank, ICICI Bank, and Axis Bank have not yet activated BBPS,
despite having issued over 50 million credit cards collectively.
This non-compliance means that fintech platforms, even those already part of BBPS like PhonePe and Cred, will be unable to process credit card bill payments for these banks’ customers after June 30.
To ensure uninterrupted service, these banks must adhere to the RBI’s guidelines.
Industry’s Call for Extension
The payment industry has requested an extension of the deadline by 90 days, citing the slow adoption of BBPS.
Currently, only 8 out of 34 authorized credit card-issuing banks have activated BBPS for bill payments.
This list includes SBI Card, BOB Card, IndusInd Bank, Federal Bank, and Kotak Mahindra Bank.
The RBI’s implementation of BBPS aims to improve tracking and resolution of fraudulent transactions while monitoring payment trends effectively.
