Attention credit card users! With just 6 days left in June, a new rule taking effect on July 1 could directly impact you.
Reserve Bank of India Orders Change
The Reserve Bank of India (RBI) has mandated that starting July 1, 2024, all credit card payments must be processed through the Bharat Bill Payment System (BBPS).
However, major banks like HDFC Bank, ICICI Bank, and Axis Bank have not yet activated BBPS. These banks collectively manage 50 million credit cards.
What Will Change After June 30?
Banks or lenders who haven’t complied with the RBI’s instructions won’t be able to process credit card bill payments after June 30.
Fintech companies like PhonePe and Credi, which are already BBPS members, must also comply by this date.
The payment industry has requested a 90-day extension, but as of now, only 8 out of 34 approved banks have activated BBPS.
Which Banks Have Activated BBPS?
The banks that have activated BBPS include:
SBI Cards
BOB (Bank of Baroda) Cards
IndusInd Bank
Federal Bank
Kotak Mahindra Bank
Why Has RBI Issued This Order?
The RBI’s order aims to centralize credit card payments, enhancing visibility for payment trends and improving the tracking and resolution of fraudulent transactions.
