RBI Mandate Impacts Credit Card Bill Payments via CRED, PhonePe, Paytm: Here’s Why

Effective from July 1, 2024, the Reserve Bank of India (RBI) has mandated that all credit card outstanding repayments must be processed through the Bharat Bill Payment System (BBPS), managed by NPCI.

This move aims to streamline bill payment processes across India.

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Understanding the Bharat Bill Payment System

The Bharat Bill Payment System serves as a unified ecosystem for bill payments, offering interoperable services accessible through various channels such as internet banking, mobile banking, wallets, kiosks, ATMs, and more.

It supports multiple payment modes including credit/debit cards, NEFT, UPI, Aadhar-based payments, and cash.

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Why HDFC Bank, Axis Bank, and Others Face Restrictions

Customers of HDFC Bank, Axis Bank, IDFC First Bank, and several others currently cannot use platforms like CRED, PhonePe, and Paytm for credit card bill payments.

This restriction is due to these platforms’ non-integration with BBPS. As a result, customers are advised to use alternative channels or direct bank platforms for their bill settlements.

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Current Integration Status and Recommendations

While banks like SBI, Punjab National Bank, ICICI Bank, and others have integrated with BBPS, facilitating seamless bill payments for their customers, other banks are still in the integration process.

HDFC Bank has advised its customers to pay bills directly to the biller to ensure uninterrupted service, aligning with regulatory guidelines effective July 1, 2024.

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